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D
dsg
Level 2
March 21, 2023
Question

1099S PROCEEDS FROM AEP PURCHASING RIGHT OF WAY

  • March 21, 2023
  • 2 replies
  • 15 views

I have a client who received proceeds reported on a 1099S. It is for a right of way for the electric power company. Is it taxable? How do I report it?

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2 replies

PATAX
PATAX
Level 12
March 21, 2023

I would imagine it's taxable since I believe right of way for gas or oil pipelines and so forth is taxable. But I'm not sure why they didn't put it on a 1099 miscellaneous form.

Skylane
SkylaneIntuit Community Champion
Intuit Community Champion
March 21, 2023

Maybe this article will help. No idea how to calculate the basis.

https://www.bergankdv.com/resources/blog/proceeds-from-an-easement-or-right-of-way-2lscpa/

If at first you don’t succeed…..find a workaround
    BobKamman
    BobKamman
    Level 15
    March 21, 2023

    Proceeds from sale of an easement reduce the basis.  When the basis is reduced below zero, then you start reporting gain.  

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