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June 16, 2021
Question

I receive natural gas royalties at the property where I live Do I put my mort interest & insurance prem in the expenses/assets sect. or is that sect. for rental property?

  • June 16, 2021
  • 1 reply
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confused about if the section is for rental property or for property lived in.

1 reply

Carl11_2
Employee
June 16, 2021

Where you live has nothing to do with royalty income.

Both rental income (which you do not have) and royalty income (which you do have) are reported on SCH E.  When you start the SCH E section, "rental property" is selected by default. Change the selection to "royalty income" and then press on. Take note that with royalty income the address does not really matter all that much, since physical property is not depreciated. With royalty income you get a depletion deduction, not a depreciation deduction. I think depletion is something like 15% a year, but not sure on that. The program will know based on the data you enter.