Form 1099S Question

[RRRichard]

How do I report income from the Form 1099-S?

[DoninGA]

What was sold so that you would have received a Form 1099-S? 

Primary personal residence, Second home, Land, Rental property, commercial property, something else?

A Form 1099-S is not entered directly on a tax return.

[RRRichard]

What was sold so that you would have received a Form 1099-S?
Primary personal residence, Second home, Land, Rental property, commercial property, something else?
A Form 1099-S is not entered directly on a tax return.

I received a 1099-S Form from the pipeline company for an easement to cross my property with their underground pipeline.

[JohnB5677]

This should be posted in the investment section:

1. Start with INCOME
2. I'll choose what I work on
3. Scroll down to Investment Income
4. Select Stocks, Mutual Funds, Bonds, Other
5. Add sales
6. No you did not get a 1099-B
7. Choose the type of Investment you sold (Everything Else)
8. Enter Description, Sale price and Date Sold
9. You probably originally purchased the property
10. The Cost Basis may be calculated as a % of the total property, also enter date of purchase.

[chasvt1]

I rec'd a 1099S for sale of timber - also have depletion allowance to take against this income

Where/how do I enter this info for taxes?

[DianeC958]

You enter this information in

• Wages & Income
• Investment Income
• Stocks, Mutual Funds, Bonds, Other

When the program asks if you received a 1099-B for this sale, the answer is no.

Then you will see a list of items to choose from, you pick Eveything Else.

For your cost basis, most people will enter a 0, but you could enter what you originally paid for the seedlings or saplings.   You claim your depletion amount as a cost of the sale.

Where do I enter income from a timber sale?

Publication 535-Business Expenses-Timber

@chasvt1 

[fdc1]

I received a 1099-S from an electric co. for an easement to cross my property with their fiber optic cable.

Did you figure out how to declare it? I sure would like to know how you handled your 1099-S from the pipeline? Would you be willing to share what you did with me?

[DavidS127]

Permanent easements are treated as a property sale.  If this is your personal property, report the sale in the TurboTax section Income>>Investment Income>>Stocks, Bonds, Mutual Funds, Other.  Answer that you did not get a 1099-B, and then follow the TurboTax instructions carefully.  If it is business property, you report it as the sale (disposition) of a portion of that business asset (Land).

In both cases, your "cost basis" is the cost of that portion of the land that is subject to the easement.  You will likely need to calculate this based on the total cost of the parcel land and the percentage of the total parcel that is subject to the easement.  You must then reduce the cost basis of the land you still own.  See the section of IRS Publication 551 at this link for more information.

Temporary easements are treated as rental or lease income in the Rentals section of TurboTax.

[CEILinda]

I am using Turbotax Premier, 2020.  These instructions don't seem to work here.  Any ideas how to enter and 1099-S, ROW Easement proceeds?

[PattiF]

Here's how to report the 1099-S for the ROW Easement. The 1099-S is an informational form and is not reproduced in the tax return

The easement - Form 1099S: 

Generally, you do not report the income for granting an easement.  You reduce your cost basis in the property by the proceeds received 

Report the gross proceeds from the 1099-S, and then enter your cost basis as the proceeds (the same amount from the 1099-S). Then your taxable gain is 0.

But because you got a 1099-S, the IRS will be looking for it on your tax return. 

• Enter the 1099-S proceeds as follows:
• Go to Federal Taxes.
• Wages and Income.
• Investment Income.
• Stocks, Mutual Funds, Bonds, Other.
• Click on either Start or Update.
• Answer NO to Did you get a 1099-B or a brokerage statement for these sales?
• Choose 'Land' as the type of investment you sold.
• Enter the remaining details for the sale your property and continue through the onscreen questions until you get to the 'Enter Cost Information' screen. 
• Click the attachment to enlarge and view

Remember to reduce the basis by the amount of the right-of-way payment only.  This basis will be used when you sell the property.

[CEILinda]

Thank you for getting back to me.

This seems to be working.  🤗

[LJBLAINE]

COUNTY TOOK AND PAID FOR AN EASEMENT 

[Cynthiad66]

Good news is that the easement income you received is not income to you if it is less than the cost of the land.  It does however reduce the cost (or basis) of the land, when and if it is sold.

If this is the case, the payment is reported in the Investment section and the cost would be the same as the income, ie, no gain or loss. 

See the following similar question I answered earlier on this topic.  If this does not answer your question, please post a comment and I can help.

[pack1971]

The 1099-S was received as a result of selling land that was inherited

[JohnW152]

@pack1971

To enter the 1099-S data for proceeds received from inherited land in TurboTax Online,

1. In the Search box on the upper right, search for 1099s, sale of property other than main home
2. Click on Jump to 1099s, sale of property other than main home
3. On the Your investment sales summary screen, click on Add sales or Add more sales
4. On the OK, what type of investments did you sell? page, click on Other and Continue
5. On the Tell us more about this sale page, enter the institution that issued Form 1099-S
6. On the Now we’ll walk you through entering your sale details screen, enter Land (personal use) for type of investment; enter I inherited it for how you received it.  Answer the rest of the questions appropriately.