<randyusenet[at]yahoo.com> wrote:

- quote -

I would treat the easement as a reduction of basis in
this property. If basis is not reduced to zero, there
is nothing to report or tax.

--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

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My question concerns when someone receives payment from a
utility company in exchange for running power lines across
the owners land. The land in question is a farm. As I
understand it, this is a capital gain and the basis would be
the basis for that portion of the land included in the
easement. I that correct? Also, is it possible to use the
proceeds to buy additional farm land and treat this as a
Like- Kind Exchange? If so, do the proceeds need to be
deposited with an intermediary or can they simply hold the
funds until the purchase is complete?

Thanks!


<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >