Received a Form 1099-S ( Proceeds from Real Estate Transaction) for sale of perment easement. Where do I enter?

[Nathan White]

Received a Form 1099-S ( Proceeds from Real Estate Transaction) for sale of perment easement. Where do I enter?

[jeffrey1]

Report this transaction on Sch D.  If a primary residence you may be entitled to claim the Section 121 exclusion (500K Joint or 250K single)

[IRonMaN]

Why would you burn up that exclusion for an easement?

[BobKamman]

Reduce the basis of the property in the amount of the easement.  If payment exceeds basis, you have a gain.  There is no IRS form for showing this accurately, so to play "Trick the Computer," put it on Schedule D with the cost equal to the payment amount.