Out of curiosity I was reading about the Keystone pipeline, as in
Out earlier thread
How is the 60k of income handled?
An easement is an interest in property. First you have to apportion the basis of the property and determine the basis of the easement - I'd think that would be the hard part. Then to the extent the payment is less than the apportioned value of the easement, it reduces the property's basis. To the extent it exceeds the apportioned basis, it is taxable capital gain.
At least, that's the way it appears to me. ___ Stu
I imagine that would be net of the grantor's expenses (e.g. legal) in the matter.
What?
with hypothetical numbers:
payment for easement $60,000 LESS attorneys fees $2,000 Net payment for easement $58,000 basis $10,000 capital gain $48,000
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