Tax
Jul. 13, 2026
Taxing condemnation recoveries
From a tax viewpoint, condemnation recoveries can trigger taxable gain, but Section 1033 of the Internal Revenue Code may allow taxpayers to defer that gain by rolling it into similar replacement property.
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
From a tax viewpoint, an involuntary conversion occurs if your property is destroyed, stolen, condemned or disposed of under the threat of condemnation, and if you receive money or other property in payment. The money may come from insurance, a condemnation award or a lawsuit settlement. Fire and other disaster recoveries often trigger these rules. The tax rules are contained in Section 1033 of the Internal Revenue Code and parallel ...
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