For 2024 I received a 1099-MISC from the city for a temporary easement on a portion of my property for a road reconstruction project. The easement is on my primary residence and does not exceed the value of the property. The easement was paid and filed in 2024, but the actual project is planned to take place in 2025. The period of the easement is 1.9 years.
Only box 1, "Rents", was filled out 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? How do I report this?
I am using TurboTax Premium online.
