Eminent domain questions

ApS · 06-26-2005, 04:08 PM

As of last week, a person's real estate property can now be taken by a Town's "eminent domain" for commercial purposes.

I'm concerned that a development nearby -- with a politically well-connected developer -- may take my large waterfront lot (large for the neighborhood) for dock and marina space. (We're still renting it out seasonally).

My questions:

If the Town should take my property (and compensate me "appropriately") do I still owe capital-gains tax on it? (Since the decision to sell can't be made within the present "five-years-as-a-residence" consideration).

Or, put another way: Is the Town's compensation treated as "ordinary income" under an eminent domain "taking"?

Is New Hampshire one of those few states that doesn't permit eminent domain for commercial purposes?

06-26-2005, 04:08 PM	#1
ApS Senior Member Join Date: Jan 2005 Location: Florida (Sebring & Keys), Wolfeboro Posts: 5,938 Thanks: 2,205 Thanked 776 Times in 553 Posts	Eminent domain questions As of last week, a person's real estate property can now be taken by a Town's "eminent domain" for commercial purposes. I'm concerned that a development nearby -- with a politically well-connected developer -- may take my large waterfront lot (large for the neighborhood) for dock and marina space. (We're still renting it out seasonally). My questions: If the Town should take my property (and compensate me "appropriately") do I still owe capital-gains tax on it? (Since the decision to sell can't be made within the present "five-years-as-a-residence" consideration). Or, put another way: Is the Town's compensation treated as "ordinary income" under an eminent domain "taking"? Is New Hampshire one of those few states that doesn't permit eminent domain for commercial purposes?