1099 S For Easement

[JenMO]

Still cell tower rent, but found out more info. When leasing co signs with owner, they are receiveing a conveyed easement. Money on 1099 is for 3 years, client will only receive 1/3 each year. Would you do a installment with 100% profit short term? Or Would it be LT captial gains? Will need to put full amount of 1099 to avoid letters, I assume, but I don't think client should have to report on all proceeds in advance. What's the best approach?

[ChEAr$]

Still cell tower rent, but found out more info. When leasing co signs with owner, they are receiveing a conveyed easement. Money on 1099 is for 3 years, client will only receive 1/3 each year. Would you do a installment with 100% profit short term? Or Would it be LT captial gains? Will need to put full amount of 1099 to avoid letters, I assume, but I don't think client should have to report on all proceeds in advance. What's the best approach?

Your subject I think mentoned a 1099S form, but that doesn't seem to fit , cause nothing is sold. is it not really a 1099 misc?
If so, ordinary income, schedule e.

Capital gain would apply if land were actually sold.

[JenMO]

No, it's a1099s, talked with the people who issued and that's how their legal dept says it needs to be reported. Said a conveyed easement has to be reported on 1099S. Company reported for 2011, have now said no reporting for 2011, mistake on the date. Guess I'll have all year now to figure it out.

[Gary2]

An easement is a sale of an interest in real estate. Typically it just lowers the basis.