Per DavidD66
Payments for utility easement sales are not considered income. Instead, the payment lowers your basis in the property. It does create a capital gain if the payment exceeds the basis in your land. You wouldn't have to report the payment on your tax return, except for the fact that you received Form 1099-MISC, and the IRS is expecting that amount to be reported. For more information on property easements, see: IRS Publication 544
Since you received Form 1099-MISC you will have to report the "Rental Income". When you enter Form 1099-MISC, it will trigger TurboTax to create a Schedule E. Report (as Other Expenses) the same amount as the rental income reported on the 1099. Give it a description of "Reduction in basis for easement". The 1099-MISC will be reported on your tax return, so it will match with the IRS records. Leave days rented blank.
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