I am working on a partnership return for which the only income is rental with the exception of $1000 of easement funds. Where would I report the easement income? On page 1 where it becomes SE taxed or on the form 8825? Thank you for your opinions.
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Sale of a Portion of the Property
Can you be more specific about the easement. Most involve land use, but there are now facade easements to deal with. The partnership has given up for monies or other property or rights part of the asset. So it should be a return on basis and a capital gain/loss.
You will have to prorate the cost of the property and allocate the prorated amount to the asset given up. This will be the basis for the property sold or given up. You can use this computed basis for computing the gain. The remaining property's basis will be reduced by the basis of the property sold or given up. -
The easement funds are indeed for land use.Comment
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