I am in a similar situation, except I received a 1099-MISC rather than a 1099-S.
The city put a temporary easement on a portion of my property for a road reconstruction project. Only box 1, "Rents", was filled out by the city on the 1099-MISC. When I enter the form into TurboTax, it shows as taxable income and results in an underpayment penalty for my taxes for the year. It also asks a number of questions about rental days, etc. that I don't know how to answer. Is this really taxable income?
