I receiver Grit operating LLC Form 1099-misc, it was for oil, gas, minerals royalty income. I tried 1099 misc form, but couldn’t get it reported. Please help
Thanks Cathy
The royalty trusts i am familiar with issue you a booklet each year with details on how to report their income. Most of it goes on Sch E where you get deductions for depletion and expenses. Interest gets reported separately. And sometimes they have you report on other forms.
Royalty trust income is pretax and is not qualified dividend income. Depletion allowance is the main plus of ownership. Yields can be good but when depleted shut down costs can be high and value can go to zero. Asset often reverts to the original owner.
The ones i am familiar with are BP Prudoe, Mesabi Iron Trust, Sabina Royalty Trust, and Permian Basin. Its been years since i had them. Not sure which have expired.