You may wish to return to the Rental and Royalty Summary page and review your entries. First confirm that you checked the box under Property Profile for "Royalty property" and checked the line for "Oil and Gas Royalty Income" for the question "What Type of Royalty Income?"
Entering expenses for a Royalty property is appropriate, including property & production taxes and depletion. Reporting expenses does not imply this is a business.
From the Property Summary page, click Done with Royalty Property at the bottom. Continue through the intervew to the page asking "Is This Qualified Business Income?" You have the option here to check the box for "No, this income is not qualified."
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