For easements I have seen have been reported on a 1099-S. The 1099-NEC in box one would be incorrect. Report it under the 1099-S would have triggered the 2nd home sale method mentioned above and reporting would flow to the Sch D, Capital Gains/Losses. Or they should have reported it with a 1099-MISC and indicated it was rents. There you would report on the Sch E and could allocate a portion of your RE taxes, Insurance, etc to offset the income. Either way, the 1099-NEC is the wrong form.
