18.25 Special Assessments and Severance Damages
When only part of a property parcel is condemned for a public improvement, the condemning authority may:
Special assessments reduce the amount of the gross condemnation award. If they exceed the award, the excess is added to the basis of the property. An assessment levied after the award is made may not be deducted from the award.
Condemnation award minus your expenses | $10,000 | |
Less: | ||
Basis of two condemned acres | $6,000 | |
Special assessment | 2,500 | 8,500 |
Net gain | $1,500 |
When both the condemnation award and severance damages are received, the condemnation is treated as two separate involuntary conversions: (1) A conversion of the condemned land. Here, the condemnation award is applied against the basis of the condemned land to determine ...
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