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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16547
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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i have a client whose home and/or part of their property will

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i have a client whose home and/or part of their property will be used for a highway right of way. of course, they are being paid for this. will this be taxable on their state and federal return? they live in ky.

Megan C :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

Megan C :

How are you today?

Megan C :

To the extent that the payments are not for damages, they are taxable. Put them on the "other income" line of the tax return

Customer:

thank you. sharon

Megan C :

Rev Ruling 68-291 says the amount received for a limited use easement reduces the basis of the affected property. If the easement denies the taxpayer from any beneficial use at all of the easement property then it could be considered a sale.

Megan C and other Tax Specialists are ready to help you
Rev Ruling 68-291 says the amount received for a limited use easement reduces the basis of the affected property. If the easement denies the taxpayer from any beneficial use at all of the easement property then it could be considered a sale.

Easements reduce basis of affected property.

Thanks again

Thanks again for your positive rating. Please come back and ask for me any time you need a tax question answered. It was a pleasure working with you today.
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