Form 1099-S and Form 4797

[RickSC]

I received a Form 1099-S “Proceeds from Real Estate Transactions.” It’s an easement payment of $1,037.68. The instructions on Form 1099-S say, “If the real estate was not your main home report the transaction on Form 4797, Form 6252, and/or the Schedule D for the appropriate income tax form.” In TurboTax Home & Business, I entered this item in the section for Business Income and Expenses > Less Common Business Situations > Sale of Business Property. (I considered it a Section 1231 asset, since it was real property held for more than one year.) TurboTax then said, “Your net profit on this property: zero.” In Forms view, it is entered on Form 4797 with a gain of $1,038 on lines 2, 7 and 9a, as well as Schedule D, line 11 and others. Did I enter the information from Form 1099-S correctly? Thank you.

[DaveF1006]

Did you sell a "right of access" easement? If so, that means you still own the land and you still pay property taxes on that land.  Or did you actually sell the land, meaning that you no longer own it, and therefore your property tax assessment is reduced accordingly?

[RickSC]

I sold a "right of access" easement. I still own the land and pay property taxes on it. Thank you.

[Mike9241 · Accepted solution]

as a permanent easement, the income is capital gain so line 11 on schedule d is where it belongs. 

[RickSC]

OK, thanks, Mike!