How do I report that NJ DOT paid me $1,600 for temporary easement on rental property

[Jack3520]

NJ DOT paid me $1,600 for temporary easement on a small portion of my rental property adjacent to highway where construction will take place. I signed a Temporary Right of Entry Agreement with NJ for the designated area. NJ issued me a 1099 S. I did not sell any portion of my rental property and the easement is only temporary until completion of roadwork. How do I report this on my taxes in Turbo Tax?

[PatriciaV · Accepted solution]

Although payment for a temporary easement is treated as rent, some municipalities will report this on Form 1099-S instead of Form 1099-MISC. You are still required to report this income on your tax return. But since this is not from self-employment, you can enter the information, so it appears on Schedule 1 Line 8 "Other Income" as follows. 

Log into TurboTax and open your return.

1. Navigate to Wages & Income >> Less Common Income >> Miscellaneous Income. Click "Add/Edit" or "Start/Update" and work through the interview.
2. Choose "Other Reportable Income" and add another item.
3. Add a description and enter the amount from Form 1099-S.

By reporting this as "Other Income", which will appear on Schedule 1 Line 8 (and on Form 1040), the IRS will be able to match the 1099-S to your return.

[Jack3520]

This appears to be the best way to handle it considering I did not sell any property. Thank you so much for your help!