The IRS position is that a condemnation award
must segregate severance damages and other components, or else a presumption exists that the award was only for the property taken.
If the property is condemned, the ground lease should provide for an equitable sharing of the condemnation award
Contaminated property taken by eminent domain should be valued as remediated when determining condemnation award
The Eminent Domain Procedure Law allows property owners to seek reimbursement for attorneys' fees, costs and expenses when the court's condemnation award
is substantially in excess of the condemnor's initial valuation.
Subject to certain thresholds and limits, the loan documents will require the borrower to restore the property with the insurance proceeds or condemnation award
The statutory duty of a judge to increase a condemnation award
for property with heritage value is not stayed when parties file objections to the award, according to the Supreme Court of Missouri.
For example, attorney's fees incurred in connection with the recovery of interest paid on a condemnation award
were nondeductible capital expenses, because they were incurred to increase an award for loss of property.
Marcus said he was reminded of one of his previous matters, where the judge ruled the 6 percent interest rate on a condemnation award
was unconstitutional and raised it to 9 percent.
The Supreme Court of Kansas upheld as enforceable a lease agreement providing that a tenant was entitled to a portion of a lessee's condemnation award
to compensate the tenant for lost profits.
Because the taxpayer used the condemnation award
to purchase qualified replacement property, the reimbursement was treated as an amount realized on involuntary conversion, and not as reimbursement for moving expenses.
Section 1033 does not allow the property owner to avoid paying taxes on a condemnation award