- 7 - this property.” All claims were then dismissed with prejudice, and, in September of 1996, payment of the $100,000 was made by the State. Discussion We must decide whether the $65,000 received by petitioner in condemnation of her residence is taxable to the extent that the payment exceeded her basis in the property. Petitioner contends that the condemnation proceeds are exempt from taxation pursuant to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, Pub. L. 91-646, 84 Stat. 1894, presently codified at 42 U.S.C. secs. 4601-4655 (1994) (Relocation Act). According to petitioner, the Relocation Act mandates that relocation payments shall not be treated as income for tax purposes, and the $65,000 at issue is in fact a portion of the relocation assistance she received from the State. Hence, in petitioner’s view, the subject funds can have no tax consequences. Conversely, respondent asserts that the Relocation Act does not exempt from Federal income tax the $65,000 received by petitioner. Respondent maintains that the Relocation Act neither applies to nor addresses the tax treatment of amounts representing the acquisition cost or just compensation paid when property is taken for public use. Rather, respondent interprets the Relocation Act to remove only payments which are in additionPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
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