A pipeline company put a pipeline across my property. They gave me $8439.17 for right a way and $16,878.33 for anticipated damages. Is all of that considered income?

[Coleen3 · Accepted solution]

No, the amount for the easement reduces the basis of your property. For example, if your bought your house for 308,439, you new basis would be $300k. This will only come into play when you sell it. The damages are just a way of paying for the repairs to your property in advance.