Monthly Archives: April 2018

Deferring Taxes On Eminent Domain Payments

DEFERRING TAXES ON §1033 EXCHANGES
Eminent domain lawyers work hard to secure just compensation for property owners. However, in gain situations, the IRS and most states want their share, too. Fortunately, solutions are available that seek to soften or eliminate the tax bite. When property is involuntarily converted, I.R.C. §1033 provides guidelines to defer capital gains and other taxes. Known as a “1033 exchange”, the code allows for non-recognition status if the proceeds are invested in similar property within 2 years after the close of the first taxable year in which any part of the gain is realized. Similar generally means property that is “similar or related in service or use” to the property so converted, terms that the IRS narrowly defines. Note that this period is extended to 3 years for condemnations of investment property, and more liberal “like-kind” rules apply to replacement property. The longer exchange period provides ample opportunity for tax planning. If properly structured, property owners can […]

By |April 15th, 2018|Categories: Eminent domain, Property Rights|

Delaware Riverkeeper Decision

The Pennsylvania Commonwealth Court has ruled for Sunoco Pipeline in the matter of Delaware Riverkeeper Network v. Sunoco Pipeline, No. 952 C.D. 2017 (Feb. 20, 2018). The court reasoned that a township lacks zoning authority to prohibit a pipeline facility regulated by the Pennsylvania PUC.

By |April 8th, 2018|Categories: In the News, Pipeline Construction, Property Rights|