Passive Income as Royalties from Solar Lease

Forum|Forum|2 years ago
April 14, 2024
1 reply
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I have leased a portion of my farmland to a solar developer that has installed solar panels and storage. I receive income reported on 1099-Misc, Box 1 - Rents. In the past I have included that income on Schedule E, Rental Income. Other TurboTax articles claim that it should be reported as passive income on Schedule E, Royalties. Should the lease income reported on 1099-Misc Box-1 Rents be reported instead on Royalties 1099-Misc Box-2?

I also have expenses incurred from ground maintenance surrounding the project. Are these expenses also reported under the 'Royalties' Expenses tab?

Thx 🙂

TurboTax Home & Biz Windows

PatriciaV

Employee

Lease payments are Rent. The 1099-MISC you received with Box 1 Rent is correct. And you are correct to have been reporting this on Schedule E as a rental property. You may report your related Rental Expenses under the same topic.

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