Received IRS 1099S for 2012 easement payment, now what?

General Mineral Rights Discussion
1

We received an IRS form 1099S for a 2012 easement purchase by a utility company (one time payment). It is for around $35K for the acres used and the timber destroyed on the pine tree plantation.

We got an extension to file 2012 taxes because I was in Afghanistan with the U.S. military.

We don't think that we have to count the payment as income, but perhaps we may need to adjust the cost basis of our land???

Can anyone knowledgeable in this area tell us what we may consider doing?

2

Possibly need to report a sale of timber basis value presumably the amount you received.

3

I read it closer and see you stated it was a form 1099 S. Most people receive 1099 misc for lease income. So I think my first response is correct. Check the IRS website for current law.