How do I report that NJ DOT paid me $1,600 for temporary easement on rental property

Forum|Forum|1 year ago
February 17, 2025
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NJ DOT paid me $1,600 for temporary easement on a small portion of my rental property adjacent to highway where construction will take place. I signed a Temporary Right of Entry Agreement with NJ for the designated area. NJ issued me a 1099 S. I did not sell any portion of my rental property and the easement is only temporary until completion of roadwork. How do I report this on my taxes in Turbo Tax?

Best answer by PatriciaV

Although payment for a temporary easement is treated as rent, some municipalities will report this on Form 1099-S instead of Form 1099-MISC. You are still required to report this income on your tax return. But since this is not from self-employment, you can enter the information, so it appears on Schedule 1 Line 8 "Other Income" as follows.

Log into TurboTax and open your return.

Navigate to Wages & Income >> Less Common Income >> Miscellaneous Income. Click "Add/Edit" or "Start/Update" and work through the interview.
Choose "Other Reportable Income" and add another item.
Add a description and enter the amount from Form 1099-S.

By reporting this as "Other Income", which will appear on Schedule 1 Line 8 (and on Form 1040), the IRS will be able to match the 1099-S to your return.

PatriciaVAnswer

Employee

Log into TurboTax and open your return.

Navigate to Wages & Income >> Less Common Income >> Miscellaneous Income. Click "Add/Edit" or "Start/Update" and work through the interview.
Choose "Other Reportable Income" and add another item.
Add a description and enter the amount from Form 1099-S.

By reporting this as "Other Income", which will appear on Schedule 1 Line 8 (and on Form 1040), the IRS will be able to match the 1099-S to your return.

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