http://www.aicpa.org/Publications/TaxAdviser/2014/march/Pages/Kebod...

• Easements and land leases are common in energy exploration and development, including pipeline construction. They are often obtained through eminent domain proceedings.
• Whether a transaction granting a person or entity the right to use property results in capital gain or ordinary income depends on whether it is treated as an easement or as a lease of or license to use land.
• The tax treatment of the sale of an easement differs depending on whether the property owner retains substantial rights to use the easement tract.
• Easement agreements often include provisions for the payment of severance damages to land retained by the owner that can be offset against the basis of the land.
• Amounts received under condemnation or threat of condemnation may qualify for nonrecognition of gain if they are reinvested as provided in Sec. 1033.