i have a 1099misc from an S corporation that is a distribution of royalty payment received. My understanding is that that qualifies as a long term capital gain. Correct?

I have a 1099Misc from an S Corporation in Texas. I am president of the corporation and I received a royalty distribution from the corp.  My understanding is that this qualifies as a long term capital gain.  How do I report this on TurboTax?


 you say the S Corp received the royalty payment and then made a distribution to you. if so, it should be the one reporting the income on its the tax return and on the K-1 for shareholders.  As to capital gain status can't tell you, but most royalties are not capital gain so please advise as to the nature of the royalty.    The S Corp should not have issued the 1099 MISC because what you got appears to be a distribution of income  - a dividend that is generally not reported to the IRS on a 1099 but only as a distribution on the K-1.        

you probably should seek professional help to make sure of proper reporting both for the corp and for the shareholders.      

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