Question

1099-S for $1000 because Train coming through neighborhood

Forum|Forum|5 years ago
March 14, 2021
1 reply
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I received a 1099-s from the local transit authority because our neighborhood covenant from 1967 said a train would never encroach into the neighborhood, bit now it is being built. They paid each homeowner $1,000. How/where do I report this in TurboTax?

ColeenD3

Please see this answer from HalAl.

You don't usually report payment for an easement or damages. You only reduce your cost basis in the remaining property, by the amount you received, for when the property is sold in the future. But,if you got the 1099-S, it must be reported on your tax return, but it is most likely not taxable.

Report the 1099-S amount as sale proceeds, then show the same amount as your basis, for a net gain of $0. On your own records, reduce your cost basis by that amount for future sale.

TurboTax does not have an entry point for a 1099-S (other than home sale). So, In TurboTax (TT), enter at:
- Federal Taxes tab
- Wages & Income
- “I’ll choose what I work on” Button

Scroll down to:
-Investment Income
-Stocks, mutual funds, Bonds, Other (Real estate is other)