Contact UsI received a 1099-S with gross proceeds for a temporary easement on our property. I believe the value of our property zeroes out any income gain but would like to know what are the appropriate tax schedules and/or forms to file with my 1040.
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Tax Professional Answers
John Stancil
You state that it is a temporary easement. If that is the case, then the income from the easement is treated as rent and reported on Schedule E. Since it is temporary, no sale has occurred, and you cannot offset the proceeds with cost basis in the property.
However, the fact that a 1099-S indicates that it is more than a temporary easement. If it is for a very long period of time, it may be treated as a sale and reported on Form 8949 and carried to Schedule D.
I suggest consultation with a qualified CPA or other tax return preparer to determine the exact status of your income.
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427 weeks ago
However, the fact that a 1099-S indicates that it is more than a temporary easement. If it is for a very long period of time, it may be treated as a sale and reported on Form 8949 and carried to Schedule D.
I suggest consultation with a qualified CPA or other tax return preparer to determine the exact status of your income.