hmosbergea
Level 3

Taxpayer receives royalties from 2 different oil companies.

1) 1099Misc Box 2 Royalties. This has been reported on Sch E.

2) 1099Misc Box 7 Non-Emp Comp: company treats recipient as working interest and could be responsible for losses incurred. This has been reported on Sch C.

Both are passive to taxpayer. Are either of these eligible for 199A even though no trade or business dealings or are they merely investments? Both were inherited several years ago.

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