--- title: Royalty Income description: Royalty --- [Skip to content](https://help.holistiplan.com/royalties#main-content) English Show submenu for translations [More support](https://help.holistiplan.com/kb-tickets/new?hsLang=en) [![Holistiplan Logo (800x200 px).webp\]](https://help.holistiplan.com/hs-fs/hubfs/Holistiplan%20Logo%20(800x200%20px).webp?width=160&height=40&name=Holistiplan%20Logo%20(800x200%20px).webp)](https://www.holistiplan.com/) Open main navigation Close main navigation - English Show submenu for translations - [More support](https://help.holistiplan.com/kb-tickets/new) Holistiplan Knowledge Base - There are no suggestions because the search field is empty. 1. [Help Center](https://help.holistiplan.com/?hsLang=en) 2. [Scenario Analysis](https://help.holistiplan.com/scenario-analysis?hsLang=en) 3. [Supplemental Income](https://help.holistiplan.com/scenario-analysis?hsLang=en#supplemental-income) # Royalty Income ## Model royalty activity reported on Schedule E, Part I. Each royalty is modeled as its own entity, allowing you to review the tax impact of individual activities while also seeing the combined results on the Summary tab. Holistiplan will calculate the net income of each royalty, oil & gas depletion (when applicable), and any Net Investment Income Tax (NIIT) implications. --- ### **Getting Started** In Scenario Analysis, navigate to the **Schedule E Income** subsection within the **Schedule 1 Income** section and click the pencil icon in the **Rentals and Royalties** row.   ![](https://help.holistiplan.com/hs-fs/hubfs/undefined-Jul-27-2026-03-47-10-6226-PM.png?width=670&height=459&name=undefined-Jul-27-2026-03-47-10-6226-PM.png)  For convenience, scenarios generated by copying an uploaded return will automatically include the names of any royalties from that original return. *Note that while the system will create entities for any listed item on the return, because Holistiplan does not read the individual income and expense items from Schedule E entities, that information will not port over to scenarios  created by copying the return.*  Alternatively, if you are working on a scenario with no previous royalty activity, click the **+ Add Entity** button to get started: ![](https://help.holistiplan.com/hs-fs/hubfs/undefined-Jul-27-2026-03-47-32-6436-PM.png?width=670&height=303&name=undefined-Jul-27-2026-03-47-32-6436-PM.png)   On the following screen, enter the name of the royalty, indicate that this is **Royalty Income** in the **Entity Type** drop-down menu, and select the **Royalty Type**. You can also add new entities from this screen by clicking the **+ Add Entity** button. ![](https://help.holistiplan.com/hs-fs/hubfs/undefined-Jul-27-2026-03-47-50-1256-PM.png?width=670&height=511&name=undefined-Jul-27-2026-03-47-50-1256-PM.png)    | **Royalty Type** | **When to Select This Option** | | --- | --- | | **Oil & Gas** | Enables depletion calculations | | **Intellectual Property or Other Royalties** | Patents, copyrights, minerals, timber, and similar royalty income. | ### **Net Income** Enter gross royalties received and associated operating expenses to determine the net income/loss for the royalty. ![](https://help.holistiplan.com/hs-fs/hubfs/undefined-Jul-27-2026-03-49-47-5334-PM.png?width=670&height=507&name=undefined-Jul-27-2026-03-49-47-5334-PM.png)  For **Oil & Gas** royalties, complete the **Depletion** section. Holistiplan defaults to the Percentage method (which reduces gross royalty income by 15%) before netting operating expenses to arrive at net royalty income. Alternatively, users can enter the cost depletion amount, and Holistiplan will apply the greater of the two methods to the gross royalty amount.  ![](https://help.holistiplan.com/hs-fs/hubfs/undefined-Jul-27-2026-03-50-09-7319-PM.png?width=670&height=586&name=undefined-Jul-27-2026-03-50-09-7319-PM.png) --- ### **Summary Tab** The **Summary tab** combines every royalty (and rental income, if any) into one view to allow for a review of net income/loss across all entered entities. ![](https://help.holistiplan.com/hs-fs/hubfs/undefined-Jul-27-2026-03-50-33-8144-PM.png?width=670&height=472&name=undefined-Jul-27-2026-03-50-33-8144-PM.png)  - [Getting Started at Holistiplan - 101](https://help.holistiplan.com/getting-started-at-holistiplan-101?hsLang=en#main-content) - [How to Contact Support](https://help.holistiplan.com/getting-started-at-holistiplan-101?hsLang=en#how-to-contact-support) - [Ready to Get Started?](https://help.holistiplan.com/getting-started-at-holistiplan-101?hsLang=en#ready-to-get-started) - 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