Roytalty question

[gman]

I have many 1099's showing royalty, can I total them and enter one amount, or must they be listed seperately?

[Jiggers]

Listed separately so the IRS can match them on the return.

[gman]

Prior accountant

Prior accountant totaled all royalties and listed as one. Would make it a lot easier when they recieve 22 1099's Anyone els do that?

[taxea]

Just because the acct did it that way doesn't make it right. I agree with listing them separately because it will likely prevent a CP2000 letter when the compute can't match the 1099's the IRS received to the amounts on the return. I don't think the computer was programmed to add up and look for the total.

[ddoshan]

This may or may not answer your question?

property.
If you have more than three rental real
estate or royalty properties, complete
and attach as many Schedules E as you
need to list them. But answer lines A
and B and fill in lines 23a through 26 on
only one Schedule E. The figures on
lines 23a through 26 on that Schedule E
should be the combined totals for all
properties reported on your Schedules E.
If you are also using page 2 of Schedule
E, use the same Schedule E on
which you entered the combined totals
for Part I.
Personal property.

[Jiggers]

If each of these 1099's are from royalty on different property locations, you would want to keep them separate as there is a limitation on the percentage depletion on property.

Besides, I charge the client for each 1099.

[origun]

"Moot Point"

For what it is worth, I was told by an IRS speaker at a seminar that when dealing with such things as multiple royalty payments or stock sales, it is a "moot point" whether we list separately or lump some together as long as the total matches what is on all the 1099s that the IRS receives. After hearing that, I have done so occasionally (e.g., when have multiple ones for very small amounts) and have never had a client receive a CP2000 for this type of entry. In the case of royalties, I would compile a chart listing all the individual companies, gross amounts, expenses of each, depletion and net amounts) which I keep and also give to client in case there should be a question. [One reason I do this: I work for HRB and have no control over prices; the preparation fee based on number of entries would be astronomical if I listed all the royalties separately on Schedule E (even ones for $1.26 which was one I just dealt with!).]

[DonPriebe]

1099-MISC not transmitted in e-file

The ONLY 1099 that is transmitted with a 1040 return is the 1099-R. See Pub 1346.

[Gary2]

Does it matter if we're talking mineral royalties vs. intellectual property royalties?

The Sch. E instructions say that for mineral royalties, there should be a separate column for each property. Presumably depletion, etc. must be tracked separately.

Intellectual property royalties (copyright, patent, etc.) would often go on Sch. C, for which there's only one line. So there's no real way to report these separately there. But what if we're talking about an heir, getting paid copyright royalties from a deceased author (assuming they're paid directly, for years after the estate is closed)? I don't know off the top of my head where they go, but it doesn't seem right to treat them as business, or at least not to have SE tax. Wouldn't those also be combined into a single column on Sch. E? Or do they go on line 21?

[taxxcpa]

Why track depletion separately if you are using percentage depletion?
If you consolidated all with 15% separately from those with other percentages wouldn't that be OK?

Cost depletion might require segregating each one.