blutopt25
New Member

I received income from a pipeline easement

I have additional misc income categorized in two ways.  One should be taxable and the other should be offset by damages occurred.  What forms do I need to offset the portion with damages?
Hal_Al
Level 15

Get your taxes done using TurboTax

You don't usually report payment for an easement or damages.  You  only reduce your cost basis in the remaining property, by the amount you received, for when the property is sold in the future. But,if you got the 1099-S, it must be reported on your tax return, but it is most likely not taxable.

Report the 1099-S amount as sale proceeds, then show the same amount  as your basis, for a net gain of $0. On your own records, reduce your cost basis by that amount for future sale. 

TurboTax does not have an entry point for a 1099-S (other than home sale). So,  In TurboTax (TT), enter at:
- Federal Taxes tab
 - Wages & Income
- “I’ll choose what I work on” Button
Scroll down to:
-Investment Income
   -Stocks, mutual funds, Bonds, Other (Real estate is other)

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