You don't usually
report payment for an easement. You would only reduce your cost basis in the
remaining property, by the amount you received, for when the property is sold
in the future.
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,
enter at:
- Scroll down to: Investment Income
- Stocks, mutual funds, Bonds, Other (Real estate is
other)
