General Telelpnone gave Wynonna $2,000 for an easement for power lines across her property.She must realize the gain or loss on the receipt of cash.

Question

Quizplus · Accepted Answer

An easement is a non-possessory right to use someone else's land for a specified purpose. The payment received for granting an easement is typically considered a return of capital, not a gain or loss, unless it exceeds the property's basis.

General Telelpnone Gave Wynonna $2,000 for an Easement for Power