Eminent Domain Report

It is spring.  Flowers are blooming; the rivers swell with snowmelt from the mountains; newly thawed Northern ponds welcome the return of their ducks and geese; Florida convulses with an annual migration of revelers.  It is only natural for the mind to turn to one of the two inevitabilities: Taxes.   

Tax time

As the Ides of April approach for individual tax filers, a mad dash to find tax savings is underway.  Many real estate investors and professionals are quite familiar with the tax saving potential of a 1031 Exchange.  Named after a section number of the tax code at 26 U.S.C. § 1031—which ...

Over the weekend, someone posted a comment on an earlier piece involving the City of Vista's Efforts to Assemble an Auto Mall.  The comment referred to potential tax advantages to owners facing condemnation, and was probably more timely than the person commenting realized.  Here is the main point of the comment:

I have read that Owners forced to sell property though eminent domain have tax advantages on any gain as opposed to if they sell voluntarily.

The comment refers to Internal Revenue Code Section 1033, which provides tax deferral for "involuntary conversions" of ...