How do I report income from this sale of property? I received a 1099-S for the sale of a tiny piece of a much larger property that I, along with my other 2 siblings inherited back in 1980. The sale was for a permanent pipeline easement. The entire property is 92.8 acres, but the part sold for the easement is described as: Permanent easement 50 feet in width upon the 92.8 acres. The right of way easement is 36.86 rods (each rod is 5 1/2 yards long). My 1/3 of the sale was $12,286. The part of our property that was sold for the easement is not used for any business nor is it rental property. My 1099-S is only for the amount I received, not the total sale amount because it is divided between me and my other 2 siblings. I'm confused on how to enter the information so Turbo Tax doesn't see it as the whole 92.8 acres that was sold. How do I enter this information?
You can prorate the basis (FMV of the entire property on the date of the decedent's death) based on a square footage percentage of the easement to the entire 92.8 acres and then divide that amount by 3 to report your share of the sale on your tax return. Where do I enter the sale of an inherited home?