Land Condemnation—Federal Income Tax Consequences

I. Introduction and Scope II. Gain or Loss … A. Elements of Net Proceeds … B. Gain or Loss Realized … C. Recognition of Losses … D. Recognition of Gains III. Evidence of Severance Damages IV. Non-recognition of Gain … A. Extent of Non-recognition … B. Time Factors … C. Acquisition of Replacement Property … D. Nature of Replacement Property … E. Replacement through Corporate Control … F. Basis and Holding Period of Replacement Property V. Particular Problems … A. Condemnation of Residence … B. Method of Electing Non-recognition of Gain … C. Effect on Statute of Limitations … D. Interest on Condemnation Proceeds VI. Conclusion