https://ttlc.intuit.com/community/taxes/discussion/easement-payment-reported-on-1099-misc/01/3334151#M1228181 <P>I live in California and received a 1099-MISC for an easement on land in Texas where I receive royalties, listed with "Box 1-Rents".&nbsp; Read somewhere that it should be a <STRONG>1099-S</STRONG>. Similar posts suggested entering the payment as a negative number in the "Other reportable income" in the Federal section.&nbsp; I initially didn't do that and the Federal return seemed to automatically consider it as a loss. Am I wrong? Should I go back and report as a negative number?&nbsp; When I got to the California State return,&nbsp; it considered it as income. Under the "Here's the income that California handles differently", I went to Miscellaneous &gt; Other Adjustments to Income, typed in 'Easement' and entered the amount received in the Subtraction column. I assume it needs to be entered as a positive number (without the negative symbol) and program with subtract amount. So is that correct for the state?&nbsp; Or, if I enter as a negative number as described above in the Federal section, will that make the adjustment in the State return so that I don't need to enter it in the "Other Adjustment" section? Just don't want an issue if it doubles the deduction, but want to make sure I get the proper deduction. Thank you!</P> Wed, 11 Feb 2026 07:44:15 GMT AMC10 2026-02-11T07:44:15Z https://ttlc.intuit.com/community/taxes/discussion/easement-payment-reported-on-1099-misc/01/3334151#M1228181 <P>I live in California and received a 1099-MISC for an easement on land in Texas where I receive royalties, listed with "Box 1-Rents".&nbsp; Read somewhere that it should be a <STRONG>1099-S</STRONG>. Similar posts suggested entering the payment as a negative number in the "Other reportable income" in the Federal section.&nbsp; I initially didn't do that and the Federal return seemed to automatically consider it as a loss. Am I wrong? Should I go back and report as a negative number?&nbsp; When I got to the California State return,&nbsp; it considered it as income. Under the "Here's the income that California handles differently", I went to Miscellaneous &gt; Other Adjustments to Income, typed in 'Easement' and entered the amount received in the Subtraction column. I assume it needs to be entered as a positive number (without the negative symbol) and program with subtract amount. So is that correct for the state?&nbsp; Or, if I enter as a negative number as described above in the Federal section, will that make the adjustment in the State return so that I don't need to enter it in the "Other Adjustment" section? Just don't want an issue if it doubles the deduction, but want to make sure I get the proper deduction. Thank you!</P> Wed, 11 Feb 2026 07:44:15 GMT https://ttlc.intuit.com/community/taxes/discussion/easement-payment-reported-on-1099-misc/01/3334151#M1228181 AMC10 2026-02-11T07:44:15Z