How do I enter royalty payments received from Tiktok on Schedule E?

[Love2Cruise]

When I enter the information from the 1099-misc and link to Sch E in ProSeries Basic, the form automatically fills in Property type 6 - Royalties. However it's asking for property description. As there is no property, what do I enter into this field? Is there a work around, or am I entering in the wrong place.

[Love2Cruise]

I think I answered my own question. 😊 Is the Property and Other description "TikTok" and property address the address of TikTok?

[dkh]

I would enter TikTok royalties on Property description, but I would use client's address ...... I could be wrong but that's what I would do.

[Love2Cruise]

Turns out, and as per IRS instructions, even though the worksheet requires this information, it does not carry over to the Sch E. Only line 1b(a) is filled in on the actual Sch E.

Thanks so much for your input. Very much appreciated!

[IRonMaN]

I think Sesame Street and TikTok is brought to you by the letter C, not E today.  I'm thinking you are tyring to put the royalties on the wrong schedule.

[Love2Cruise]

Are you sure about that? The IRS says report royalties on Sch E. Plus, the royalties for Tiktok are not for a business - they are proceeds paid as the result of how many followers the user has.

[Love2Cruise]

And when you link to Sch C it carries over as miscellaneous income and not royalties, as indicated on the 1099.

[IRonMaN]

"they are proceeds paid as the result of how many followers the user has"

And the user got those followers by performing services which equals schedule C. 

And you don't need to complete a 1099 in the software, you can just enter the total in sales on schedule C.  The 1099 worksheet does not get submitted with the return.

[IRonMaN]

And, yes I am sure about that.

[Love2Cruise]

Thank you for the explanation. My sincere apologies if I insulted you by asking if you were sure. It was not my intention in any way shape or form. I just wanted to make sure because the IRS instructions seemed to contradict what you were saying. 

Again, thank you for your input.

[IRonMaN]

It takes a lot more than that to offend me😉

[abctax55]

"...It takes a lot more than that to offend me"

Don't call him mangy though.  He gets pretty upset at that.

[dkh]

Whew....good thing you were paying attention @IRonMaN      

sorry about that @Love2Cruise  

[Love2Cruise]

LOL! No worries. It's all good when we're trying to help each other. 😊

[Love2Cruise]

😂😂😂

[Love2Cruise]

Glad to hear that. 👍

Ok, I have one more question - if the 1099 is reported to the IRS as royalties, does it not matter that is still reported as income? I ask this because many, many years ago, when I first started doing tax returns, I reported some business income on Schedule C as opposed to Schedule E because of the nature of the income. The client was randomly audited, and he was penalized because the income wasn't reported on the correct schedule.

[IRonMaN]

It’s being recorded as income on schedule C, where it belongs———- all is good