Tax Law (Questions About Taxes)/Easement 1099-S


I received a 1099-S with gross proceeds for a temporary easement on our property.  I believe the value of our property zeroes out any income gain but would like to know what are the appropriate tax schedules and/or forms to file with my 1040.  Thank you.


You state that it is a temporary easement. If that is the case, then the income from the easement is treated as rent and reported on Schedule E. Since it is temporary, no sale has occurred, and you cannot offset the proceeds with cost basis in the property.

However, the fact that a 1099-S indicates that it is more than a temporary easement. If it is for a very long period of time, it may be treated as a sale and reported on Form 8949 and carried to Schedule D.

I suggest consultation with a qualified CPA or other tax return preparer to determine the exact status of your income.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

All Answers

Answers by Expert:

Ask Experts


John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

©2017 All rights reserved.