Sale of property

[Gdk001]

I sold a small portion of property to the state for a road easement.  I received a 1099-S for the amount of the sale.  How do I enter this into TurboTax when the remaining property including the house still is owned by me?

[HelenC12]

@Gdk001 

You normally don't report the income for granting an easement. You only reduce your cost basis in the property by the proceeds received.

• However, because you got a 1099-S, the IRS will be looking for it on your tax return.
• Report the gross proceeds but enter your cost basis as the proceeds amount, so that your taxable gain is 0.

These are entered in the investment section of TurboTax. Follow these instructions:

1. Open or continue your return in TurboTax.
2. In the search box, search for sold second home (yes, I know it's for the sale of easement but this will get us to the right spot) and select the Jump to link in the search results.
3. Answer Yes on the Did you sell any stocks, mutual funds, bonds, or other investments in 2020? screen.
   • If you land on the Here's the info we have for these investment sales screen, select Add More Sales.
4. Answer No to the 1099-B question.
5. On the Tell us more about this sale screen, enter the name of the person or institution that brokered the sale.
6. On the next screen, select Other and that you purchased it. Answer the remaining questions to finish entering your sale.