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The company that owns the railroad abutting my property purchased a small amount of my property in 2020. Do I report that income? How?
As I understand it, my property was divided into two properties, and one was sold "fee simple" to the railrload company.
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The company that owns the railroad abutting my property purchased a small amount of my property in 2020. Do I report that income? How?
I don't know if this was an eminent domain case, but the process is the same. Reduce the basis in your remaining property by the amount you received. It is not normally reported as income unless the amount you received was larger than the basis (the amount your paid for it) of the property, in which case, you report the difference.
Please see RichardG's answer here.
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The company that owns the railroad abutting my property purchased a small amount of my property in 2020. Do I report that income? How?
I don't know if this was an eminent domain case, but the process is the same. Reduce the basis in your remaining property by the amount you received. It is not normally reported as income unless the amount you received was larger than the basis (the amount your paid for it) of the property, in which case, you report the difference.
Please see RichardG's answer here.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"