Do I Owe Taxes on the Proceeds from My Eminent Domain Taking?

Probably, unless you undertake certain actions. One of those actions is let’s say that you had a tax basis in a piece of property of $100,000, and the government pays you $200,000 for that, and that it’s a commercial piece of property. That $100,000, that second $100,000 is a capital gain. You’d have to pay capital gains rates on that, unless within three years from having obtained the $200,000, you’ve reinvested it in like kind property. That’s a common example, but I am not a tax specialist, so I do often give consultations to CPAs that property owners have and tax attorneys that they have, but this is a pretty straight forward area, and I would suggest that when you have this one occasion that you not probably file your taxes by yourself.