1099-MISC ROYALITIES

Forum|Forum|2 years ago
March 28, 2024
2 replies
14 views

Client received a 1099-misc with box 2 royalties having a value. On the backside they give supplemental reporting where they give you the gross revenue, deductions, and net income. My question on Sch E can I report the deductions then report the net income on the 1040.

Thank you for your help in advance.

ProSeries Basic

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Best answer by Just-Lisa-Now-

I put the gross royalty amount at the top of Sch E, then list the deductions down in the expenses, the net flows to the 1040

qbteachmt

Level 15

Here is the help article, expand the section that explains how to link your entered 1099-Misc to Sched E:

https://accountants.intuit.com/support/en-us/help-article/form-1099-misc/entering-form-1099-misc-proseries/L681oP28Q_US_en_US?uid=lubkoy9r

You didn't mention what type of royalty, if that is oil & gas?

Don't yell at us; we're volunteers

Just-Lisa-Now-

Answer

Intuit Community Champion

I put the gross royalty amount at the top of Sch E, then list the deductions down in the expenses, the net flows to the 1040

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

BobKamman

Level 15

And don't forget the depletion deduction, which will not be shown on the 1099.

When they come from Oklahoma, there may also be state income tax withheld, requiring a state return if it's enough to bother with.

T

taxxman02Author

Level 4

I did forget about the depletion, thank you all for your answers. I get a lot of good information and learning tips from this group, especially when I do not see most of these situations on a regular basis.

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