Royalty Trust income

[editrevino2016]

I own shares of oil royalty trusts, are there any expenses that I can claim for having them?

[OpeA1]

Hello editrevino2016!

What usual obtains is that the oil company will provide you with the paperwork for your royalty income (and expenses), if there are any attributable to you. This is how you know what expenses can be claimed against the income. The company/trust who pays out the income is responsible for telling you what the expenses are too. It might be worth giving them a call.

I hope this help!

Thank you for using Turbo Tax!!

[KochuK]

Hi editrevino2016, thanks for joining the TurboTax Special Forum today.

The most common tax documents are Form 1099-Misc, box 2 Royalties, and Form 1099-INT.

The royalty income is reported on Schedule E, type of property number 6 Royalties. Aside from out of pocket expenses, such as county property taxes,  safe deposit box fee to safe guard the ownership documents, most of the owners do not incur much expenses. In general, TurboTax calculates 15% depletion cost. Net income is taxed as ordinary income, taxed at your marginal tax rate.

For any other deductible expenses, please refer to your specific trust tax documents.

I enclose below article for your reference:

Basic Tax Reporting Oil-and-Gas Royalties: 1099-MISC Royalties

https://proconnect.intuit.com/taxprocenter/tax-law-and-news/basic-tax-reporting-of-oil-and-gas-relat...

Hope the above helps.