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.