A Tax Question

[dman]

Early in the spring I was paid a sum of money by ODOT over an eminent domain situation where I'm going to lose about 40 ft. of my front yard to a road widening project. I've heard conflicting stories on this.

First, I've been told that since this my primary residence of dwelling that I can't be taxed on it, unlike if I was using the residence to make money (rental property etc.)

Second, it hardly seems fair that you lose a good chunk of your property and then get taxed on it. If I had a say in it, I would've kept my property.

Any insight to the tax laws is appreciated.

[TeamBoone]

I have a friend who works for the IRS (an auditor). I'd be glad to ask this question next week (vacationing in Cabo this week... always takes a major vacation just before the New Year's crunch).

Anyway, depending on the responses you receive here, let me know if you want me to proceed next week.

PM would be best as I don't always read every thread every day.

[dman]

I have a friend who works for the IRS (an auditor). I'd be glad to ask this question next week (vacationing in Cabo this week... always takes a major vacation just before the New Year's crunch).

Anyway, depending on the responses you receive here, let me know if you want me to proceed next week.

PM would be best as I don't always read every thread every day.

OK, Thanks

[George Foster]

You could go to the IRS web site. They have a toll free mumber to ask an agent. Even if you had to pay taxes on it, it would only be a capital gains tax of 15% not taxed like income tax.

[Yachtzee]

Sounds like a question that would be on my individual tax exam tomorrow. :yikes:

Not that I will actually be able to answer your question, but I will be up all night studying the Internal Revenue Code and Treasury Regulations.