You normally do not report the income for granting an easement. You only reduce your cost basis in the property by the proceeds received.
But because you got a 1099-S, the IRS will be looking for it on your tax return. Report the gross proceeds as described above. but enter your cost basis as the proceeds, so that your taxable gain is 0.
Enter the 1099-S proceeds as follows:
- Go to Federal Taxes
- Wages and Income
- Investment Income
- Stocks, Mutual
Funds, Bonds, Other
- Click on either
Start or Update
- Answer NO to Did
you get a 1099-B or a brokerage statement for these sales?
- Choose 'Everything Else' as the
type of investment you sold
- Enter the
remaining details for the sale your property.
