Pipeline easement via Eminent Domain. 1099-misc rents and other income

[Rocky93]

We received a 1099-misc (with amounts for rents and other income) for a pipeline easement via Eminent Domain.  The amounts (box 1 and box 3) don't add up to what the pipeline company paid us.  It is a permanent easement, so surprised to see it labeled "rents".   How do we enter these two amounts?  BTW, it is on land where our house is and we don't own a farm.  Thank-you

[LeonardS]

For a permanent easement, you should receive Form 1099-S and use Schedule D to report capital gains.  You should contact the authority that issued you the 1099-MISC and ask why they sent you a 1099-MISC for a permanent easement and not a Form 1099-S.  You should not enter the 1099-MISC as this is not the correct form for your permanent pipeline easement.

[Rocky93]

Thank-you for your reply.  There was also a temporary construction easement (hence the "rent" amount on 1099misc, at least according to the pipeline company) and there were damages (other income on 1099misc).  But yes, we are also expecting a 1099s for the permanent easement.