Question

Royalty vs Rental Property

Forum|Forum|5 years ago
March 31, 2021
1 reply
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When I started my 2020 return and started with my 2019 (done in Turbo Tax), somehow one of my rental properties was changed to a Royalty item and i can change it back to a rental property without having to delete and reenter. This happened twice, one i deleted and re-entered, but the second would take substantial time to do (a lot of assets). Is there a trick to get it changed back to rental income? I did update the it accordingly, but later questions asked what type of royalty is was and it reverted back to royalty income. Any ideas?

C

Cynthiad66

The only option is to delete the royalty and re-enter as shown below. Below is how to delete the Schedule.

On TurboTax Online go to Tax Tools, then Tools then, delete a form then Schedule E.

To enter your rental:

In TurboTax, search for rentals and select the Jump to link at the top of the search results.
Answer Yes to the question Did you have any rental or royalty income and expenses in 2020 for property you own?
Follow the on-screen instructions as you proceed through the rental and royalties section.
- We'll ask you to enter general information about your rental (like description, address, and ownership percentage).
- Eventually, you'll come to the Rental Summary screen, which is where you enter your rental income and expenses, assets and depreciation, and vehicle expenses.

Tip: Rent is considered income in the year you received it, not the year it applies to. This means that a rent payment for the month of January 2021 collected in December 2020 is reported on your 2020 return.

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