easement

[grandmabee]

client was paid for an easement on their property.

other income or Capital D

[mcb39]

Schedule D....Capital Gain

[imjulier]

Or show on sch d to account for the income at zero g/l and reduce basis in property. I'm just throwin' it out there....don't know if its right or wrong.

[Maribeth]

client was paid for an easement on their property.

other income or Capital D

In general, the granting of an easement for a limited use or a limited time reduces the basis. See Rev Rul 68-291. If the proceeds exceed the basis, then there is gain.

It is is a perpetual easement, then it is a sale, even thoough the title does not change hands.

Maribeth

[mcb39]

In my experience, the proceeds have almost always exceeded the basis.....