The Rents and Royalties section is used to report income received due to renting property or receiving royalties.
Rental income is generally reported on a Form 1099-Misc, Box 1 or is paid directly to the landlord.
Royalties are generally received through copyrights, patents, and oil, gas, or mineral properties. Royalties are usually reported to you on a Form 1099-Misc with an amount in Box 2.
If you are unsure how to report the information, select the "Guide Me" feature after clicking on the Schedule E.
To access the Schedule E take the following steps:
- Federal
- Income (select my forms)
- Profit or Loss from Rentals and Royalties (Reported on Schedule E)