In 2024, I received income on a small tract of land for "Wind Development Rights." This is a small annual per-acre payment that the energy company pays the landowners while they negotiate the rest of the deal prior to construction. Sounds like a rental to me, but I received a 1099-S with boxes 1 and 2 checked. If I go down the 1099-S Real Estate Transaction rabbit hole, we get into land cost, basis, etc. Not relevant. I guess it should be a 1099-MSC, but I am stuck with the S. I can force a zero cost on form 8949 and get the correct amount to flow to Schedule D, but I don't want to set off any fire alarms. Is there a better way? I already had it entered as a 1099-MSC and thought I was done until...1099-S ???
