Schedule E & 1099 Misc

Forum|Forum|3 years ago
April 4, 2023
1 reply
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I received a 1099misc with income listed in Box1 Rents for a Bonus payment for mineral rights lease. Was NOT royalties. Was NOT actually property rental. How do I enter this information with being listed as a business owner or a landlord?

DavidD66

Level 15

Lease payments made for mineral rights are considered rental income, and are reported on Schedule E. Since the amount paid is listed in box 1 of your 1099-MISC, the IRS is going to expect it to be reported on a Schedule E. When you enter the 1099-MISC, you are going to be prompted by the program to link it to a Schedule E. You could report it as "Other Income", but you would have to enter the 1099-MISC incorrectly, by indicating the amount reported was in Box 3 - Other Income. This could generate a letter from the IRS. I recommend you report it as reported.

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