Received 1099-misc box 3 for sale of permanent pipeline easement. As per IRS publication 554: since the amount received is more than the basis, it is a capital gain to be reported as a sale of the that specific part of the property. The IRS monitors 1099-misc box 3 and therefore it must be reported.
(I realize the company should have sent a 1099S but this is what I received.) Unfortunately, Turbo Tax forces 1099-misc entries into ordinary income.
I need the actual "Turbo Tax" procedure to acknowledge the 1099-misc box 3, but have it report as a schedule D capital gain.
