turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

BCRW2
Returning Member

1099-S and 1099-MISC for Right-of-Way land question

I've had to sell part of my land in front of my house to the State government for a Right-of-way acquisition. Before the sale, I signed an agreement for them to have use of the land until the sale was completed for $3,000. I received a 1099-MISC for this, and in Box 1 for rent was $3,000. I entered this and it led me to entering a Schedule E and owing tax. Is this correct? 

 

Regarding the actual sale of the land for $1,500 I haven't received a 1099-S from the title company. I filled out an information form in the closing documents for it. Would I still need to report this sale on Form 8949 as if I received a 1099-S?

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

1099-S and 1099-MISC for Right-of-Way land question

the $3k is rent for the right to use the land until the sale is final - schedule E and yes you will owe tax on it. 

the $1500 is an easement. Report the 1099-S amount as sale proceeds, then show the same amount as your basis, for a net gain of $0. On your own records, reduce your cost basis by that amount for future sale. 

 

BCRW2
Returning Member

1099-S and 1099-MISC for Right-of-Way land question

Would it be considered an easement when I don't retain any ownership of the section of land?

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies