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You're right ... I apologize ... the $975 is supposed to be subtracted from our original cost basis of $101,500 so that if and when we sell our property/house, our new cost basis would be $100,525.

My real problem ... am I interpreting this correctly? Do I not have to show this $975 anywhere on my tax return? I do not want to "red flag" the IRS by omitting it if I'm supposed to be putting it in the Schedule D as an "easement" with a cost basis of $975, gross sales proceeds of $975, therefore zeroing out with an end result of no capital gain or no capital loss, but ... remembering that we're responsible for reducing the cost basis our our property/home by the $975 if and when we sell it.

I'm sorry if I'm not being too clear about this, but I find it very confusing and just want to make sure I do the right thing. Because we received the 1099-S for the $975 I don't know if that means that it must be shown somewhere in our tax return when we file for 1999 or whether or not the IRS knows it was for an "easement" and won't be expecting it to show up on our return?

I've tried to call 1-800-829-1040 for tax assistance, but they want me to leave a telephone number which is not possible because I'm at work and the phone is usually tied up so I'm desperately trying to find the answer elsewhere.

Any help you can give me would be greatly appreciated. Thanks!!
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