1099-MISC ROYALITIES

[taxxman02]

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.

[qbteachmt]

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-pro...

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

[Just-Lisa-Now- · Accepted solution]

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

[BobKamman]

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.  

[taxxman02]

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.