For the cost basis, do I enter the original purchase price of the home or how do I assess the basis for the right of easement section I sold? If entering the original purchase price, I will have large loss and don't think that is a correct way of reporting it.
EX: Purchased home for 400,000 on 11 acres. Pipeline paid 10,000 (reported on 1099-S) for a 1 acre right of easement. Is it correct to report a $390,000 loss and take the allowable deduction or should I enter a cost basis for the proceed amount and not take a gain or a loss?
How will this impact reporting the sale of my home in the future, potentially?
