Royalties and QBI

Collapse
X
 
  • Time
  • Show
Clear All
new posts
  • kathyc2
    Senior Member
    • Feb 2015
    • 1947

    #1

    Royalties and QBI

    Client inherited mineral rights in WY. 2018 royalties were 50K. He doesn't do anything with it other than collect checks. I say no QBI, but wanted to check if I was missing something.
  • Lion
    Senior Member
    • Jun 2005
    • 4699

    #2
    Royalties, K-1, Sch E, no. Working G&O on a 1099-MISC, maybe yes.

    Comment

    • Maribeth
      Senior Member
      • Oct 2006
      • 425

      #3
      1099-Misc, Box 2, Royalties - No. 1099-Misc, Box 7, Nonemployee compensation - Yes ???????

      Comment

      • Kram BergGold
        Senior Member
        • Jun 2006
        • 2112

        #4
        I have seen multiple articles saying royalties from oil and gas are not eligible for QBI.

        Comment

        • Lion
          Senior Member
          • Jun 2005
          • 4699

          #5
          Royalties - No. Working interest on Sch C - Yes/Maybe.

          Comment

          • ATSMAN
            Senior Member
            • Jul 2013
            • 2415

            #6
            Most of the K-1s that have QBI eligible income will supply a worksheet showing the sources of income and the shareholder's interest ratio and the shareholder's amounts. I just did 2 K-1s this year and both had that nice worksheet.
            Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

            Comment

            • kathyc2
              Senior Member
              • Feb 2015
              • 1947

              #7
              Royalties are on 1099-misc forms. I've pretty much decided to not claim it this year, and if different guidance comes out I'll amend next year.

              Comment

              • Burke
                Senior Member
                • Jan 2008
                • 7068

                #8
                Originally posted by kathyc2
                Royalties are on 1099-misc forms. I've pretty much decided to not claim it this year, and if different guidance comes out I'll amend next year.
                I think it all boils down to whether the royalties are generated by the TP's business activities or not. If they are directly related to the TP's trade or business, they go on the business return(s). If the royalties are generated by other activities such as investments, and other pursuits which do not relate to TP's business activities, such as the publication of a book for someone who is a one-time author of fiction, for instance, they go to Sche E.

                Comment

                Working...