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.
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.
This should be posted in the investment section:
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?
You enter this information in
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
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?
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.
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?
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.
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.
Thank you for getting back to me.
This seems to be working. 🤗
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.
The 1099-S was received as a result of selling land that was inherited
To enter the 1099-S data for proceeds received from inherited land in TurboTax Online,
I received a 1099-S for the sale of my townhouse ins Nevada, what am I supposed to do with it for tax purposes?
It depends on what the townhouse was used for.
The capital gain on the sale of your primary home is not taxable (up to $250K, $500K married). To be eligible you must have lived in and owned the home for at least 2 out of the 5 year prior to sale. You do not even need to report it on your tax return, unless you got a tax document, usually a 1099-S. The 1099-S may have been included in your closing documents, instead of arriving in the mail, in Jan. or Feb. of the following year.
In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in Home & Business)
- Wages & Income
All Income Show More
Scroll down to:
-Less Common Income
- Sale of Home
The part where you said "Most people put in 0 for cost basis", I thought Cost basis was the amount you originally paid for the house/land/ whatever you are reporting you then sold. So how could anyone put 0 there?
Can you please explain what they are really asking for when they mention "cost basis" so I know what they are referring to, and IF I need to put 0 there or not as well? I am clearly confused.
@Macy522 - Yes, 0 would be wrong for the sale of most (almost all) capital assets. But @DianeC958 was responding to a question about Timber Sales, specifically . Cost basis for timber is usually zero. Timber basis is not the cost of the property. For a discussion on Timber Basis, see https://www.extension.purdue.edu/extmedia/FNR/FNR_FAQ_2.pdf
I came to this question because it was about cost basis, sorry I am talking about sale of home and land in my situation. Can you please explain what cost basis means, what are they asking for in My situation?
Cost basis is, indeed, what you originally paid for it plus the cost of any improvements (e.g. new roof) over the years. For some people, cost basis might involve some idiosyncrasies, e.g. inherited or gift property or previously deceased spouse.
In my case i received money for an easement for a pipeline across my property. As I was not actually selling the land and I still have use of the surface but somewhat restricted. I didn’t feel I needed a value in anything pertaining to the actual selling of the land that would generate a capital gain. Also, it was a one time payment not like a lease. For instance I could not build a permanent structure in the easement corridor. In my case there was already a pipeline there they were replacing the old one. The result of that was they were actually putting the new line in a more friendly place for me. If in the future I want to add to the house I could, but to limited extent, but not violate the agreement.
how do i enter it on taxes sold house this form was giving from title company. Thank you Rick Clark
It depends on what the "house" used for. TurboTax does not provide a specific entry place for a 1099-S. If it was your primary home. follow instructions for 1. If anything else, including a 2nd home. follow instructions for 2.
1. The capital gain on the sale of your primary home is not taxable (up to $250K, $500K married). To be eligible you must have lived in and owned the home for at least 2 out of the 5 year prior to sale. You do not even need to report it on your tax return, unless you got a tax document, usually a 1099-S. The 1099-S may have been included in your closing documents, instead of arriving in the mail, in Jan. or Feb. of the following year.
In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in Home & Business)
- Wages & Income
Scroll down to:
-Less Common Income
- Sale of Home
2. In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in Home & Business)
- Wages & Income
Scroll down to:
-Investment Income
-Stocks, mutual funds, Bonds, Other (Real estate is other)
Answer no, when asked if you got a 1099-B. then follow the interview.