grandmabee Posted April 15, 2009 Report Share Posted April 15, 2009 client was paid for an easement on their property. other income or Capital D Quote Link to comment Share on other sites More sharing options...
mcb39 Posted April 15, 2009 Report Share Posted April 15, 2009 Schedule D....Capital Gain Quote Link to comment Share on other sites More sharing options...
imjulier Posted April 15, 2009 Report Share Posted April 15, 2009 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. Quote Link to comment Share on other sites More sharing options...
Maribeth Posted April 15, 2009 Report Share Posted April 15, 2009 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 1 Quote Link to comment Share on other sites More sharing options...
mcb39 Posted April 15, 2009 Report Share Posted April 15, 2009 In my experience, the proceeds have almost always exceeded the basis..... 1 Quote Link to comment Share on other sites More sharing options...
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