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dsharp
New Member

How do you write off for a fee paid to you for a pipeline cutting through your right of way

 
1 Reply
Coleen3
Intuit Alumni

How do you write off for a fee paid to you for a pipeline cutting through your right of way

You don't usually report payment for an easement. You would only reduce your cost basis in the remaining property, by the amount you received, for when the property is sold in the future.

If you got the 1099-S, it must be reported on your tax return, but it is most likely not taxable.

Report the 1099-S amount as sale proceeds, then show the same amount  as your basis, for a net gain of $0. On your own records, reduce your cost basis by that amount for future sale. 

TurboTax does not have an entry point for a 1099-S (other than home sale). So,  In TurboTax, enter at:

  • Federal tab
  •  Wages & Income
  • Scroll down to: Investment Income
  • Stocks, mutual funds, Bonds, Other (Real estate is other)

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