Yes, compensation for eminent domain seizure is reported as an Investment Sale. This is considered a sale because you have lost your ownership rights for the property.
In order to record the eminent domain payment properly, you have two choices:
1) You may allocate a portion of the adjusted basis in your property to the area taken by eminent domain as your basis for the sale. This could be acreage or square footage. This option will reduce a) the amount of capital gains on the sale and b) the basis of your property when it is sold in the future.
2) You may report zero cost-basis for the eminent domain property, which will make the entire proceeds from the sale subject to capital gains tax (generally 15% or 25%, depending on your tax bracket).
Under either option, the purchase date is the date you originally purchased the property.
The reimbursement for temporary use of your property is Miscellaneous Income (or Other Business Income). The amount reimbursed for landscaping would also be other income, offset by the cost of repairing/replacing the damage.
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