Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Author: MikeLH Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Land Condemnation Date: 2/9/2001 6:17 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
If the state condemns land for a right-of-way and offers the landowner payment for the land, does the landowner owe taxes on the amount received?
Thanks in advance!
Print the post Back To Top
Author: euphoriant Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 46020 of 121061
Subject: Re: Land Condemnation Date: 2/9/2001 8:30 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
If the state condemns land for a right-of-way and offers the landowner payment for the land, does the landowner owe taxes on the amount received?

Okay, I'm not a tax expert. I'm trying to respond to people because I feel bad that the experts are no longer here, so please take my advice with caution. I could be wrong.

I believe you are selling the land to the state. I believe they will send you a 1099 and you will have to record what you receive as proceeds.

Now, part of the amount you receive may not be considered proceeds (an amount in excess of fair market value perhaps) and that will also be taxed, but probably differently, if they even do this. I am not sure, but the state should tell you.

Good luck,
e


Print the post Back To Top
Author: GaSam Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 46051 of 121061
Subject: Re: Land Condemnation Date: 2/9/2001 2:12 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
It has been several years since we had land condemned. I believe the way the accountant did it was to say that it affected the basis of the property. In other words reduced our the purchase price of the property by the amount received.

This was for our personal residence and was before the change in capital gains so I don't know if that affected it.

Hope this helps a little.

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Advertisement