@Anonymous_ wrote:
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You may clearly have a gain as a result of the payout, but it would seem to be proper to report the payout representing loss of rent as rental income while reporting the payout representing the loss of the structure as a "sale".
The land can be converted to personal use in the program because it only affects the program's worksheets. If you continue to hold the land as an investment and later sell it for a loss (most likely that would be unusual), the loss can be recognized regardless.
Thanks for this confirmation that I am proceeding on the correct path. You are correct that I will most certainly have a gain and I'm trying to get an idea this week of what the hit will be so I can meet the 4th qtr payment deadline. It's been a real roller coaster ride but I'm getting close to the end and can fine tune it all next month.
