Articles Tagged with tax liabilities

As if eminent domain is not bad enough, after you’ve gone through the process, the government wants to tax you on the land it made you sell. Savvy property owners, however, can limit their tax liabilities through the use of a 1031 exchange process.

Can a property owner limit the effects of eminent domain?

Internal Revenue Code section 1033 permits the owner of property taken by eminent domain to avoid income tax liability by purchasing qualified replacement property within a specified time following the condemnation.