Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
blutopt25
New Member

I received income from a pipeline easement

I have additional misc income categorized in two ways.  One should be taxable and the other should be offset by damages occurred.  What forms do I need to offset the portion with damages?
1 Best answer

Accepted Solutions
Hal_Al
Level 15

I received income from a pipeline easement

You don't usually report payment for an easement or damages.  You  only reduce your cost basis in the remaining property, by the amount you received, for when the property is sold in the future. But,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 (TT), enter at:
- Federal Taxes tab
 - Wages & Income
- “I’ll choose what I work on” Button
Scroll down to:
-Investment Income
   -Stocks, mutual funds, Bonds, Other (Real estate is other)

View solution in original post

1 Reply
Hal_Al
Level 15

I received income from a pipeline easement

You don't usually report payment for an easement or damages.  You  only reduce your cost basis in the remaining property, by the amount you received, for when the property is sold in the future. But,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 (TT), enter at:
- Federal Taxes tab
 - Wages & Income
- “I’ll choose what I work on” Button
Scroll down to:
-Investment Income
   -Stocks, mutual funds, Bonds, Other (Real estate is other)

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.48m
Members

2.61m
Discussions

Manage cookies
v