I'm taking standard deduction. If I receive oil royalties generated by my primary residence property, can I deduct mortgage int & insurance expenses from that income?

Forum|Forum|3 years ago
February 4, 2023
1 reply
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Turbotax identifies mortgage interest, property taxes, insurance, and utility costs as potential deductions from royalty income. This seems appropriate for rental properties, but not royalty income.

TurboTax Premier Online

PatriciaV

Employee

No, unfortunately you cannot deduct expenses related to your residence from royalty income. The allowable deductions are for property taxes on the mineral interest (usually billed separately from the residence), plus production/severance taxes and depletion. TurboTax will prompt you for these types of deductions when you mark the box for "Royalties" during the 1099-MISC interview.

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