Tax Question; Royalty address


#1

Good Afternoon,

I live in NC, and 2018 is my first year of receiving royalties in OK. I am currently trying to answer all of the tax questions correctly on the Turbo Tax software. I was hoping that someone could possibly help me with a few questions.

My first question is regarding “Royalty Address”. Page E-5 of 1040 Schedule E instructions read “… For royalty property, enter code “6” on line 1b and leave lines 1a and 2 blank for that property.” However, I am using Turbo Tax, and it is requiring at least a city and state to continue. Unfortunately, this is all so new to me that I am clueless on how to extract that information from what I have. The two locations are “RYAN 1H-26XX” and “PRICE 1H-13”. How can I go about figuring out exactly which city these are in? I think one is in Cole, and the other in Purcell, but I would rather ask you folks for guidance instead of just hoping that I am right. (FYI, “Price” was my great-grandmother’s maiden name, so I just wanted to say “Howdy” to any potential distant relations on this forum.)

Last, Turbo Tax is also asking “Is this Qualified Business Income (QBI)?” Any ideas how I would determine a yes or no answer to this? I only receive a couple of small royalty payments about every 6 months, that is all. The explanation of a QBI on TT is rather ambiguous, but I want to get this right the first time.

Thank you in advance for any help provided.


#2

Nevermind. I came across this online today and it answered my first question.

“If TurboTax prompts you to enter an address for the property, use the actual address if you know it (look on the property tax bill if you have one). Or use your own address. The IRS instructions say address lines 1 and 2 should be left blank, but sometimes the program won’t let you continue without an address.”

Source: https://ttlc.intuit.com/questions/4379079-on-my-royalty-payments-it-says-other-deductions-and-taxes-taken