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!
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
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.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |