AboutJohn Stancil, CPA Expertise I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 30 years. I am a member of the AICPA, National Society of Tax Professionals, and the Institute of Management Accountants.
Experience I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CFM, and CIA. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I write a monthly tax column for the local newspaper.
Expert: John Stancil, CPA Date: 7/22/2008 Subject: emminent domain, right of way payment with retained ownership
Question John, I read your response regarding tax liability with eminent domain sale (in Houston area). I have a similar question but with a twist. Entergy is using eminent domain to obtain a permanent right of way through the back of my property to run power lines. I will retain ownership of the property with build restrictions but they are paying me a one-time payment plus the proceeds from what ever wood and pulp is taken from the cleared property. Since I will retain ownership, but have no choice, will I have capital gain tax liabilities? This is in Livingston Parish, Louisiana.
Answer Allen,
Thanks for your question.
Yes, as you are selling property rights, the sales is taxable, at capital gain rates. You may be able to allocate some basis to the sale, as this definitely lowers the value of your property.
