Where do I report Lease Bonus Payment on my tax return


#1

In 2018 I received some Lease Bonus income - partial payment for a top lease with the balance to be paid once the former company released their lease on non-producing minerals. I received a 1099-Misc and the amount is reported as “Rents”. I use Turbo Tax and the program won’t let me put it on my Schedule E with the other royalty income. It tells me to set up a separate Property and asks me questions that I don’t know how to answer -as if I own a some property I am renting out. I have called Turbo Tax and they are no help. Bottom line - where should this lease bonus income be reported on my 1040?


#2

It goes on Schedule E. It is rental income.