Pennsylvania - I own farm property. We granted a gas pipeline right of way through the property. This is all a part of the Marcellus Shale work in PA. Here is my issue. We were paid an amount for the right of way and an amount for surface damages. The company issued us a 1099 for the total amount (right of way/surface damages). How do I handle not getting taxed on the half that is for surface damages? I use turbo tax as my preparation software.
You are going to need a tax professional this year. TurboTax is not equipped to properly deal with something of that nature. Seriously...none or some of it may be taxable, and some of it would lower your basis in the property.
Every now and then even the most "savy" people...who have been doing their own taxes for years, run across a year when they need a tax professional. This is that year for you.
And...I do NOT mean an average tax professional. You need to call around, explain your situation, and find someone who knows how to deal with it. It doesn't have to be a high priced tax attorney or CPA, it just needs to be someone with the right experience. Look for tax offices that are open year round. They generally have the most experienced professionals.
