TurboTax Business has no 1099-MISC, where to enter?

[migdalskiy]

An entity received form 1099-MISC with $300 in box 2 Royalties. They are from a publicly traded stock held by the entity. The stock pays a dividend and it's apparently classified as Royalties.

In TurboTax Home&Business there is 1099-MISC entry for this. But TurboTax Business (for entities) doesn't have this topic at all. Where do I enter these dividends?

[GeorgeM777]

What type of business entity do you have, i.e., S-Corp, Partnership, C Corp, etc.?  For example, if your business entity needed to prepare an S-Corp return, then to enter the royalties in TurboTax Business, you would select the Federal Taxes tab, then select the Income tab, and then scroll down the screen to Other Income.  In the Other Income category, click Start across from Royalty income.  

[migdalskiy]

Thanks!
It's a Trust (Complex, Irrevocable, has to file its own return)

The Other Income doesn't have any specific sections there, just a list of generic entries.

Can I enter the $300 as "1099-MISC dividends classified as (2) Royalty income" ?

[GeorgeM777 · Accepted solution]

For a Trust, when entering information into TurboTax Business under the Income tab, there is a category for Rentals and Royalties. Your 1099-MISC has identified the income as a royalty, and thus, it seems appropriate to enter the income in the Rentals and Royalties section.  However, your description of what this 1099-MISC represents--a stock dividend--is at odds with the information contained in box 2 on the 1099-MISC.  It seems you have a choice here.  Either enter the income as a royalty in the Rentals and Royalties section, or request that the payor amend the 1099-MISC to reflect that this income is a dividend.   In the Income section, there is the category for Interest and Dividends.  

At this point, you probably won't be able to get an amended 1099-MISC.  Therefore, you will probably need to enter this income in the Rentals and Royalties section of TurboTax Business for Trusts.  Your situation gets further complicated because when you enter this income as a royalty, you may have to also complete a Schedule E.  All of this can be done in TurboTax; however, if you characterize the income on the 1099-MISC as something inconsistent with what is on the 1099-MISC, such characterization may further complicate things.  

[migdalskiy]

If I enter these in the Royalties section, it needs the source address. The stock is of a Royalty Trust incorporated in Delaware; with principal executive offices in New Hampshire; listed and traded on New York Stock Exchange; and held in street name by a broker in Connecticut. This affects requirements to file state taxes.
State of incorporation seems like where the state having tax jurisdiction, although where Executive offices are probably also matters... Any guidance on what address to enter there?

[migdalskiy]

Actually, the answer turns out to be neither of those states, it's Alaska! And it's not obvious at all from cursory searches. To the poor souls in my shoes, the solution is to google "2022 Tax Information Booklet for <insert your stock name here>"
It is a 100 page document that nevertheless answers the questions of what state(s) the income is derived from, and some deductions.