For clarity, I am tax planning for next year. I just received the “compensation” from the utility. No indication if a 1099 will follow next year. They have not asked for my SS.
Assuming I must claim it as income, can I offset that amount by reducing the property cost basis so that no taxes are owed? The money was compensation for tree removal and damage to trees so that the utility can install new power lines. No power lines existed along the property before. The removal of dozens of mature trees (including several in the front yard of the home) will have a negative impact on my property value. The earlier portion of this thread suggests that this should not result in a taxes owed and goes through the steps.
