Tax Law (Questions About Taxes)/Easement Compensation


In May 2015 I bought a house with my brother and his wife.  It is my primary residence and a vacation home for my brother and his wife.  In September 2015, a gas pipeline company paid us $32,500 to run a pipeline on our property.  Do I have to pay taxes on this?  If so, at what rate?  My brother wanted me to take all of the money.  Will he have to claim this on his taxes anyway?  How much of the $32,500?  (The compensation is to cover damages to property, loss in property value and the land itself.)

Thank you for your help.

As with much tax.  It depends

This is a multiparty question with many variables that are not a dressed in your question..  and the possible tax on 32k is enough that you need the right answer (s)

Send me a new question directly to me (not to the pool - but select Patrick medusa), but mark the question private and I'll give uiu my contact information so we can follow up offline.

In the meantime - Google: "pipeline condemnation taxadvisor" and you will find a great article on the subject.  The tax advisor is the tax division of the American cpa society.  It was published in march or may of 2014

There are also "issues" with "sharing" and reporting the revenue between the two owners.  Which likely falls over into how yiu report stuff like property tax and mortgage interest each year.  Which I'd bet a cup of coffee is not being done correctly either.

Send new question. And my Web and phone follow


Tax Law (Questions About Taxes)

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Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).


19 years cpa. ms tax. NOTE: My discussions are only a general information and do not constitute tax advise without entering into a specific agreement and executing an engagement letter; This free chat is nothing more than general information and should not be construed as tax advice nor does my response or replies imply an agreement to provide client specific advice or other guidance for purposes of avoiding IRS tax or penalties and should not be relied upon without your own validation and confirmation of the how the discussion may fit your facts... Not having all the facts and/or not having a direct client relationship prevents me from providing the most accurate replies as possible and I highly suggest using a local CPA to provide you with written advice and guidance. Taking matters into your own hands is much akin to trying to land an airplane without a license. It is easy to FLY a plane, but LANDING is when critical experience is key. In short, caveat emptor; do your homework and don't just rely on free chat board advice anywhere, anytime.

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