asked

If county government acquires a part of your principal residence land under threat of condemnation to make a bike path and gives you compensation, can one use this compensation to reduce the cost basis of the house for future time to calculate the capital gain rather than having to pay the capital gain tax at this point? The house will still be used by the owner and it is difficult to calculate the capital gain as only part of the land from the principal residence is taken. Or the tax has to be paid now.

August 31st, 2023

Sign Up to View Answers

Create an account to view answers and interact with the community!