Tax question

[Kenneth Brown]

During the spring I sold a right of way for a pipeline. My total payment was 10,000. On my description part of the check it lists it as:

1.62 acres @300 per acre= 4860=25% for easement= 1215 and 75% for damage= 3645

Timber damages = 1.62 acres @ 1000 per acre=1620 and ten (10) mature oaks located in ROW= 3520 = 5140.

I pushed to get to the 10,000 mark and they wrote it in as the 10 mature trees to get to the amount I would settle for. In addition I asked to be paid only 25% of the original easement as the actual easement and pay the other 75% as damages in addition to other damages. This way I would recieve 1215 for the actual easment and 8785 for damages. I recieved a 1099-S for 4860 (which should all be taxable) and a 1099-MISC for 5140 (which since it is for damages should not be taxable).

My question- Shouldn't I have the 1099's corrected to show 1215 on the 1099-S and 8785 on the 1099-MISC? Wouldn't this make me responsible for taxes on 1215 instead of 4860? I'm not trying to cheat the govt out of theirs but I agreed to the terms on my checks desciption as outlined above to ensure I didn't lose a large chunk of my money to taxes. Am I wrong in my thinking?

 

[technostingray]

Re: Tax question

Pay the two dollars.

 

[JB]

Re: Tax question

Ask them to explain, KB. They may have made an error.

A few years back I got an erroneous form for interest and principle on a mortgage. They reversed them so that It appeared that I was liable for tax on the principle paid and not the interest.

A phone call to the attorney's office got me the revised (and correct) forms.