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Royalty income

Forum|Forum|4 years ago
February 4, 2022
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We have royalty income from gas wells. We do not own the land, just the mineral rights. Why are we having to fill out Schedule C forms.

Best answer by DaveF1006

You don't. If your your royalty income reported on a 1099-MISC in Box 2, you will enter the 1099-MISC. After entering this, the program will ask a question on if this income is investment income or Royalty income form your business. Here you will want to answer this is investment income and then the income will be reported on a Schedule E and not a C.

DaveF1006Answer

You don't. If your your royalty income reported on a 1099-MISC in Box 2, you will enter the 1099-MISC. After entering this, the program will ask a question on if this income is investment income or Royalty income form your business. Here you will want to answer this is investment income and then the income will be reported on a Schedule E and not a C.

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A

AlanP2Author

Good answer! Problem solved, We were confused by the 1099-MISC calling the income "Royalty". Should have been "Investment Income" as you pointed out. Thanks very much.