How to report right of access easement income

[taxu2]

Client was offered a one time payment from a company for an easement on is property. The easement will last 50 years. Does this income need reported and if so, how? Or would it just lower the basis of the property when sold?  

[IRonMaN]

Yes it would reduce the basis.  If a 1099 was received report the income and show basis as the same amount as the proceeds.