Yes, I received a 1099-S form. Box 2 shows 25000.00. Box 4 is checked.
I had not thought about using the amount of water frontage (116' in my case) to determine the cost basis. However, the section of property I exchanged with the neighbor (Approx 3' x 36') does not contain any water frontage. But it is a portion of my land that restricts what I can do with my property (will only be able to build a 1 car garage instead of a 2 car garage). I do not feel like we "profited" $25000 on the sale of the land since we gave up the option to build the garage we would want.
