Although there isn't any gain/loss on the easement
"transactions", it should be reported because you received form
1099-S and the IRS has received this form as well. Normally, such income isn't
reported, you would only reduce your cost basis in the property by the
easement amount received.
Please follow the steps below:
1. Federal Taxes
2. Wages and Income.
3. Scroll down to Investment Income and select Stocks,
Mutual Funds, Bonds, Other. Say no to Did you
receive Form 1099-B. Category is Everything Else. You will be
able to enter the description, date sold, acquired (the date you purchased the
entire property), the proceeds (as shown on 1099-S) and cost basis (same amount
as proceeds).
