I RECEIVED A FORM1099S FROM THE STATE OF KY FOR RI...
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I RECEIVED A FORM1099S FROM THE STATE OF KY FOR RIGHT OF WAY FOR 1/3 OF THE FRONT YARD FOR THE HOME I CURRENTLY LIVE IN. SHOULD I CLAIM THIS AS INCOME?

 
5 Replies
Level 15

I RECEIVED A FORM1099S FROM THE STATE OF KY FOR RIGHT OF WAY FOR 1/3 OF THE FRONT YARD FOR THE HOME I CURRENTLY LIVE IN. SHOULD I CLAIM THIS AS INCOME?

Yes you must claim this as income. See this prior response for how to enter it: https://ttlc.intuit.com/community/taxes/discussion/i-received-a-1099-s-for-the-sale-of-a-right-of-wa...

Level 15

I RECEIVED A FORM1099S FROM THE STATE OF KY FOR RIGHT OF WAY FOR 1/3 OF THE FRONT YARD FOR THE HOME I CURRENTLY LIVE IN. SHOULD I CLAIM THIS AS INCOME?

Did you actually sell the land, so that your lot is officially smaller as recorded at the county clerk’s office?  Or did you give the utility an easement (that will be recorded as part of the property but your lot dimensions are the same)?

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Level 15

I RECEIVED A FORM1099S FROM THE STATE OF KY FOR RIGHT OF WAY FOR 1/3 OF THE FRONT YARD FOR THE HOME I CURRENTLY LIVE IN. SHOULD I CLAIM THIS AS INCOME?

SHOULD I CLAIM THIS AS INCOME?

@JLW0714jkw0401 

It depends. Maybe. Maybe not.

Did you sell the land to the state so that your property line as recorded as your county property tax assessor's office reflects that you no longer own that part of your property? (thus reducing the amount of property you are paying property taxes on.)

Or does your property line remain unchanged and therefore you continue to pay property taxes on that land you gave/sold the state right-of-way to?

This matters, espeically of the right of way is so the state can widen the street in front of your house.

 

Level 15

I RECEIVED A FORM1099S FROM THE STATE OF KY FOR RIGHT OF WAY FOR 1/3 OF THE FRONT YARD FOR THE HOME I CURRENTLY LIVE IN. SHOULD I CLAIM THIS AS INCOME?

Level 15

I RECEIVED A FORM1099S FROM THE STATE OF KY FOR RIGHT OF WAY FOR 1/3 OF THE FRONT YARD FOR THE HOME I CURRENTLY LIVE IN. SHOULD I CLAIM THIS AS INCOME?

In all likelihood, the money is not taxable income, but the 1099 – S form will have to be dealt with one way or the other, or else the tax payer will probably get a compliance letter from the IRS.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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