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(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 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.


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 ?
PTI Chairman Imran Khan said, 'This should be condemned at all cost.
He also condemned the Punjab police for opening indiscriminate fire on protesters wherein two people were killed and many others wounded.
Interior Minister Ahsan Iqbal has also strongly condemned the terrorist attack in Quetta.
Governor Balochistan Muhammad Khan Achakzai and Chief Minister, Sardar Sanaullah Zehri have strongly condemned the bomb explosion.
Earlier in the day, the United States also condemned the Monday attack on the bus carrying Amarnath pilgrims in Jammu and Kashmir's Anantnag District.
The Syrian Foreign and Expatriates Ministry strongly condemned on Wednesday the terror attacks committed in the Iranian capital of Tehran.
The French presidency and French foreign affairs minister Jean-Marc Ayrault also condemned the attack in a statement, saying that the timing of the attacks shows that the perpetrators want to weaken the religious coexistence in the Egyptian state.
ir/en/News/818377 Iranian state-run news agency IRNA AaAaAeAeAaAeAeA saying he condemned "terro operations at any forms" and that Iran, as a victimAaAaAeAeAaAeAeA of terror has always rejected terrorist activity.
KARACHI -- An Anti Terrorism Court in Karachi on Monday issued fresh black warrants for two condemned in mates, directing jail authorizes to hang them till death on 17 March.
ySTANBUL (CyHAN)- Main opposition Republican People's Party (CHP) leader Kemal Kylycdaroy-lu was punched in the face while heading to a weekly party meeting in Parliament on Tuesday, an incident that has been strongly condemned by many political parties and politicians.
BNA) -- The US Embassy in Bahrain has condemned the bomb attack that occurred yesterday outside Manama.
Summary: Druze sheikhs Thursday condemned a brutal crime that took place earlier this week in the Aley region, when relatives outraged over an interfaith marriage cut off the penis of the husband.