Deductions & credits

For instructions on reporting your easement payment see "1099-s Sale of Land Easement."

1. Type 1099-b in Search (magnifying glass) in the top right corner
2. Select Jump to 1099-b
3. On "Your investments and savings," select +Add investments
4. On "Let's Import your tax info, select Enter a different way
5. On "OK, lets start with one investment type," choose Other
6. On "Tell us more about this sale" enter "1099-S from xxx for Right of Way" or something similar
7. On "Now, enter one sale for 1099-s, chose Land (personal use) as the type and fill in the rest of the info

Tax Champ Carl says, assuming this is a "right of access easement":

So basically, you have to figure that portion of land the money was paid for. Then figure what percentage of your original purchase price of the property applies to that portion of land the perpetual easement payment was for. That will be your cost basis. If the money you were paid exceeds that cost basis (I'm sure it will) then you have a taxable gain. You'll only pay tax on the gain.

@Good3