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?

SAMIAM · 07-03-2005, 08:57 AM

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

GWC... · 07-03-2005, 09:44 AM

Forget to read the next to last paragraph?

06-26-2005, 04:08 PM	#1
ApS Senior Member Join Date: Jan 2005 Location: Florida (Sebring & Keys), Wolfeboro Posts: 5,788 Thanks: 2,084 Thanked 742 Times in 532 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?

07-03-2005, 09:44 AM	#3
GWC... Senior Member Join Date: Apr 2004 Posts: 1,325 Thanks: 5 Thanked 0 Times in 0 Posts	Oops... Forget to read the next to last paragraph?

07-03-2005, 08:57 AM	#2
SAMIAM Senior Member Join Date: Apr 2004 Location: Moultonborough Posts: 2,836 Thanks: 326 Thanked 1,626 Times in 562 Posts	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