Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Returning Member
posted Apr 9, 2025 9:05:02 PM

Schedule E Error - Income from Rental and Royalties must be reported as separate properties

I received a 1099-MISC for mineral rights on land in West Virginia that I do not own.  I only own the mineral rights.  The 1099-MISC contains an amount in Box - 1 Rents, as well as Box 2 - Royalties.  I've read every community post I can find, and I have tried to correct the entries on Turbo Tax, but I cannot get past schedule E.  I only received one 1099, but created multiple properties in the Rental Properties / Royalties section; however, I cannot seem to correct the error.  When I look in the "forms" section, I can see that two Schedule E's have been created.  One of the Schedule E's only includes the Royalties, but he second Schedule E contains both the Rents and Royalties on the same form.  Any helpful advice is appreciated - and if you could be as specific as possible, I would appreciate it.  

0 1 920
1 Replies
Expert Alumni
Apr 12, 2025 11:44:58 AM

You are either really close or have it.  They should be on the same sch E. You should only have one Sch E but will also have worksheets.

 

Box 1 rent does create a Sch E page 1 for renting out the right to explore.  

Box 2 royalty does create Sch E page 1 for royalty income. The royalty is listed as code 6 for property type on line 1b.

 

Reference:  Instructions for Schedule E (Form 1040)

 

Here are some screenshots. I have two royalties listed with the rent.