Eminent Domain Lawsuit Won, How will it be taxed
In 1995, The State of Florida filed a Petition in Eminent Domain to acquire 27 acres of land that my family and I inherited.
Now, 15 years later we have been awarded just compensation for the land. My personal share of the land was 3.33%, a dollar amount of $214,000 which included interest that the state paid from the time they seized the land to the time the judgment was made, I believe the interest paid was 11%.
How will this be taxed?
It is a long-term gain?
Do I only pay taxes on the amount awarded above the value of the property when I received it? If so, what if I do not know the value of the property at the time of inheritance?
Is there anything I can do with the money to make it non-taxable (such as buying a house)?
My only other income for the year is a ssi disability check I receive for 1,300 monthly. I am permanently disabled.
Please let me know.
Last edited by Bdowd625 : 01-30-2010 at 05:12 PM.
Reason: Adjust layout