Land improvement grant

[TAX4US]

TP owns about 42 acres. No farming or business run on property. TP received ok to construct fences along drainage ditches and water runoff ditches. TP in the future wants to graze cows on property. TP spent 37k out of pocket to erect fences. Applied for and received grant money to reimburse. Problem is Depart of Agriculture issued a 1099 for the amount. How would you show this on return? BTY IRS transcript does show this 1099.

[spanel]

TP owns about 42 acres. No farming or business run on property. TP received ok to construct fences along drainage ditches and water runoff ditches. TP in the future wants to graze cows on property. TP spent 37k out of pocket to erect fences. Applied for and received grant money to reimburse. Problem is Depart of Agriculture issued a 1099 for the amount. How would you show this on return? BTY IRS transcript does show this 1099.

Line 21 other income.

Chris

[Burke]

And since it is taxable income, he can add it to his basis in the land.