I have a 1099S for pipeline easement to Rice Energy. Where to I document this?

ghmm0103 — Sat, 01 Jun 2019 06:37:07 GMT

The 1099S may not be taxable at all to you if it is an ea...

MichaelL1 — Sat, 01 Jun 2019 06:37:09 GMT

The 1099S may not be taxable at all to you if it is an easement (not a sale) as it reduces the basis (cost) of the land. If it is reduced below $0 then there is a gain that must be reported.

To account for the 1099S in TurboTax, you could show this as an investment sale. If the proceeds (1099S) is less that the cost, then show the same amount as cost. Then for the tax records record that the basis of the property is now reduced, should you sell it in the future.

Easements. The amount you receive for granting an easement is generally considered to be proceeds from the sale of an interest in real property. It reduces the basis of the affected part of the property. If the amount received is more than the basis of the part of the property affected by the easement, reduce your basis in that part to zero and treat the excess as a recognized gain.

If the gain is on a capital asset, see chapter 16 for information about how to report it. If the gain is on property used in a trade or business, see Pub. 544 for information about how to report it.

See http://www.irs.gov/publications/p17/ch13.html Easement at the bottom of the page for more information

https://www.bergankdv.com/resources/blog/proceeds-from-an-easement-or-right-of-way/

To enter your 1099-S

Click on Federal Taxes

Click on Wages and Income

Click on I'll choose what I work on

Scroll down to Investments

On Stocks, Bonds, Other, click the start or update button

If the amount received is more than the basis of the part of the property affected by the easement, reduce your basis in that part to zero and treat the excess as a recognized gain.

topic The 1099S may not be taxable at all to you if it is an ea... in Deductions & credits

I have a 1099S for pipeline easement to Rice Energy. Where to I document this?

The 1099S may not be taxable at all to you if it is an ea...