Share 'Right of Way or easement payment: Taxable or Not?'
Just wondering: If you grant a surface right of way or easement for a road and receive a lump payment (pipeline related but no pipeline,):Is this taxable?At what rate?Is it straight income?Is it similar to royalty income?Is it considered a 'tax free return of capital'? (If so ,what makes this so?)Is Tax basis reduced by the amount received in payment?
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As exciting as this is, we know that we have a responsibility to do this thing correctly. After all, we want the farm to remain a place where the family can gather for another 80 years and beyond. This site was born out of these desires. Before we started this site, googling "shale' brought up little information. Certainly nothing that was useful as we negotiated a lease. Read More