condemnation

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condemnation

(1) A proceeding to obtain private property for public use through the exercise of the government's rights of eminent domain. Historically considered possible only for public improvement projects such as roads, schools, and courthouses, the landmark U.S. Supreme Court case of Kelo v.City of New London, 125 S.Ct. 2655 (June 23, 2005) held that local government could condemn land belonging to one private party in order to convey it to another private party as part of an economic development plan to increase government revenues, add jobs, and improve the quality of life in a depressed area.

In a condemnation case, the government will order an appraisal of the property and then offer the owner the appraised price,or perhaps a negotiated amount in excess of the appraisal but taking into account the savings realized by not having to litigate the issue.If the property owner does not accept, the government must escrow the amount of money determined by its appraisal and may then proceed with condemnation of the property.The parties may then go to court to contest the amount of the required award,but the contest will not prevent or delay condemnation of the property.

Specialized tax rules apply whether property is condemned,sold to the government under threat of condemnation,or sold to a third party under reasonable fear of impending condemnation (see IRS Publication 544 at www.irs.gov).Taxpayers may defer income realized in a condemnation award by purchasing replacement property within 2,3,or 5 years,depending on the particular circumstances.

Payments to cover the costs of relocating are not part of the condemnation award and are not taxable income.Severance damages awarded because of damage caused to the remaining property are not part of the condemnation award. The amount of damages will reduce the basis in the remaining property. If it reduces the basis to $0, then any excess must be reported as gain, but taxation can be deferred.

(2) A decision by local government that property owned by another is no longer safe and must be repaired or demolished.It is not a defense that the owner is making no use of the property and is not exposed to any danger,so long as the public at large may be exposed to danger.If the owner fails to make the necessary repairs or take any other action, the government authority may conduct the demolition itself and place a lien upon the property for the costs of demolition.

Condemnation

The taking of property by a public authority. The property is condemned as the result of legal action and the owner is compensated by the public authority. The power to condemn property is known as the right of eminent domain.
References in periodicals archive ?
Al-Quds and al-Ayyam said that an Israeli parliamentary committee approved the Nationality Law bill amidst strong condemnation by Palestinian-Israeli lawmakers.
In New York, all condemnations are subject to the Uniform Land Use Review Procedure (ULURP), which imposes substantial procedural requirements, including layers of approval at the community and city level.
Along with cellulite, which was the largest issue in the total condemnations in slaughterhouse A, these were responsible for 84.
Neighbors and others want the steep, densely wooded properties preserved as open space, through condemnation if necessary.
Similarly, the Texas statute prohibits condemnations "for economic-development purposes, unless the economic development is a secondary purpose resulting from municipal community development or municipal urban renewal activities to eliminate .
According to the dissenters, an economic development condemnation amounts not to a public use, but one for the benefit of private persons.
He spends half his time representing condemning authorities and half representing landowners subject to condemnations.
Prior to Kelo, states have dealt with these types of condemnations in a variety of ways.
Rozzo's account of prohibited Italian literature, would have profited from an attempt to relate formal condemnations to the practice of rewriting entailed by expurgatio.
We must emphasize that this article only provides a general overview; analyzing the tax consequences of condemnations can be complex, highly case sensitive, and involve considerations beyond the scope of this article.
I see specific condemnations of specific relationships in St.