No. The money on the 1099-S is not taxable. Please see TurboTax Expert JamesG1 solution below.
"You still have to deal with the 1099 that was reported to the IRS. Report the income, then immediately report a minus entry for the same amount. Reference both entries as 'right of way sold - basis adjustment'.
Follow the steps below to report this income that is not reported as self-employment income.
- Select Federal from the left side of the screen.
- Select Wages & Income on the left side of the screen.
- Scroll down to Less Common Income. Click the down arrow.
- Click Start / Revisit to the right of Miscellaneous income….
- Click Start / Revisit to the right of Other reportable income.
- At the screen Other Taxable Income enter the description of the income.
- Click Add another Miscellaneous income Item and enter the reversing entry.
The income will be listed on line 8z of the Schedule 1 Additional Income and Adjustments to Income and line 8 of the Federal 1040 tax return."
View TurboTax Expert JamesG1 original solution here.
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