Deeded a very small parcel of our property to CA Dept. of Transportation. Received 1099-Misc for small $ amount as (1 Rents), but was not a rental. Where/how to report?

[sfbutterfly8]

Shouldn't this amount be reported in box 3 Other Income?  However, Turbo Tax instructs this option is not to be used for real estate.

[MaryK4]

This is usually how an easement (not outright sale but right to use) is reported, if you are not sure look at your documents. Because you received a 1099-MISC, you can enter that as Farm/Rental income, then subtract it out as an expense.  Mark it separate as a miscellaneous expense and title it "EASMENT REDUCED BASIS" so that it can be traced.