1099-s for lease of subsurface rights on timber land

[johnd9999]

I received a 1099-S for a one-time bonus for leasing the pore space on my timber land.  How do I enter this?

[CesarJ]

For a one-time bonus from leasing subsurface rights on timber land reported on Form 1099-S, you generally report this income as proceeds from a real estate transaction.

To enter the 1099-S in TurboTax Online:
1. Go to the Federal section.
2. Select Wages & Income.
3. Scroll down to the Less Common Income section.
4. Select Start or Revisit next to 1099-S, Proceeds from Real Estate Transactions.
5. Enter the information exactly as shown on your 1099-S form.

Since this is a one-time bonus related to leasing timber land rights, it is treated similar to real estate proceeds. Be sure to check for any related expenses or basis adjustments to calculate gain or loss.

[johnd9999]

I'm using the windows version of TurboTax on my PC, and I'm not finding the section "Proceeds from Real Estate Transactions"?

[CesarJ]

In the Windows version of TurboTax, you can find the Proceeds from Real Estate Transactions section by following these steps:

1. Go to the Federal Taxes tab.
2. Select Wages & Income.
3. Scroll down to the Your Home section.
4. Look for Sale of Home, 1099-S or similar options related to real estate transactions.

This section allows you to enter details about real estate sales and proceeds. It may be labeled under home sale or real estate sale incomes.

@johnd9999 

[johnd9999]

TurboTax is telling me that the Sale of Home section is only for the sale of my home.  The one-time bonus payment for lease of pore rights is on timber land with no home?

[CesarJ]

In TurboTax Desktop, even if the sale reported on Form 1099-S is for property that is not your home (such as rental property or land), you still start by going to the Federal Taxes section and then Wages & Income.

From there, under Less Common Income, select Start or Update next to Sale of Home. When asked if you sold your home, answer Yes and enter the address of the property sold.

TurboTax will then ask questions to help classify the property type (like rental or second property) and properly report the sale with adjusted basis, depreciation, and expenses.

This process handles reporting 1099-S for any real estate sale, not just main homes.

@johnd9999