Skip to main content
March 21, 2022
Question

Should entry be made under 2021 Royalty Income for income on Grantor Letter from Life Partners. Letter states to be reported on line 3 of page 1 of Schedule E of 1040?

  • March 21, 2022
  • 1 reply
  • 0 views
No text available

1 reply

PatriciaV
Employee
March 21, 2022

Schedule E Line 3 is used to report Rental Income. Royalty income is reported on Line 4.

 

In either case, you will need to set up either a mock Schedule K-1 for this investment or a Rental/Royalty Property to record the 2021 income from the Grantor Letter.

 

Additional Info:

Where do I enter a K-1 that I received?

How do I enter a 1099-MISC for royalty income?

Where do I enter income and expenses from a rental property?

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"