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How do I add expenses to my royalty income

Forum|Forum|6 years ago
June 1, 2019
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Best answer by view2

Box 2 of Form 1099-MISC is reserved for tax reporting related to royalty payments.Part I of Schedule E (Form 1040){select royalty for this] Link to "investment"at the last screen of the 1099-misc section..

After you enter the royalty income in Part I of Schedule E (Form 1040) [enter gross amount] section, it will be followed by the royalty expenses section where you can enter things like production taxes, mineral property taxes, production costs, depletion, etc.["More expenses" radio button generally on depletion screen.]

Royalties received as a result of creative work such as writing, music and art, is considered self-employment income and is reported on Schedule C.Where the expenses would be entered .

M

mesquitebean

What type of royalty? Is this royalty on Schedule E; i.e., investment income royalty, such as typical mineral royalty from oil/gas?
Or is it royalty from a business that you engage in professionally?

J

jcorwin320

yes

V

view2Answer

Box 2 of Form 1099-MISC is reserved for tax reporting related to royalty payments.Part I of Schedule E (Form 1040){select royalty for this] Link to "investment"at the last screen of the 1099-misc section..

After you enter the royalty income in Part I of Schedule E (Form 1040) [enter gross amount] section, it will be followed by the royalty expenses section where you can enter things like production taxes, mineral property taxes, production costs, depletion, etc.["More expenses" radio button generally on depletion screen.]

Royalties received as a result of creative work such as writing, music and art, is considered self-employment income and is reported on Schedule C.Where the expenses would be entered .