Yes Dan, I should have been more elaborate with my explanation. Sophisticated owners know this but 'Mom and Pop" may tell their attorney to make them file.
diningcar An additional factor may be in play: If your property is taken by Eminate Domain the owner may then reinvest their proceeds in similar property without an income tax payment. So some owners may force the condemnation process to have that opportunity.
An additional factor may be in play: If your property is taken by Eminate Domain the owner may then reinvest their proceeds in similar property without an income tax payment. So some owners may force the condemnation process to have that opportunity.
I don't think that's right. I believe that if you voluntarily sell your property under threat of condemnation, that counts as an involuntary conversion under tax law. (You can do a like kind exchange with property that you sell just for the fun of it, too, but the rules are more restrictive.)
In other words, if you get an offer letter from a DOT saying that they need your land for a highway project, and you accept that offer, tax law treats your proceeds the same as if they had actually filed an eminent domain lawsuit against you.
Dan
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dpeltiern other words, if you get an offer letter from a DOT saying that they need your land for a highway project, and you accept that offer, tax law treats your proceeds the same as if they had actually filed an eminent domain lawsuit against you. Dan
I suspect that once a company's balance sheet grows beyond a certain size, they begin to see it more as a matter of imminent domain.
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