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?

Acres...Actually ,I was planning to build a restaurant on your property.Please try to be out by August 1st ,so I can start construction.I called Judge Souter and he said it was ok.
Thanks

Oops...
 

Forget to read the next to last paragraph? :rolleye2: