An Overview of Eminent Domain & Condemnation In South Carolina - Part 6 of 6
Attorneys’ Fees & Costs
If I consult an attorney, what will it cost me?
Most experienced eminent domain attorneys take condemnation cases on a contingency fee agreement, meaning that the attorney will take a portion of the recovery rather than charge hourly fees. This usually means that if the attorney does not generate a recovery for you, you do not owe any attorneys’ fees. It is usually beneficial to consult an experienced eminent domain attorney who can advise you on the various ways which you can be enabled to afford an attorney. Ask the attorney how you can afford legal services and how such services can be structured so that you minimize risk of loss.
A complete answer to this question depends on your particular case. If the case is settled and the Condemnee and the Condemnor are able to reach an agreement prior to trial, some or all of the costs and fees may be obtained from the Condemnor through the settlement negotiations.
Taxes and Tax Consequences
Do I pay taxes on the amount I receive as just compensation?
It depends. A condemnation is considered an involuntary conversion and is treated differently from other sales and other cases. You will have a period of time to reinvest the proceeds of the case and defer your tax obligation until a later date.
If a portion of your award is considered severance damages (compensation for damages to remainder property you continue to own), you may be able to defer the payment of taxes on that portion of your award.
The tax deferral benefits of condemnation are also available to sales instead of condemnation. You may thus defer the payment of taxes on a sale to the condemning authority even if you settle the dispute without the Condemnor having to file condemnation action.
It is advisable to consult with an experienced eminent domain attorney or an attorney who specializes in taxation matters to address these issues and maximize your tax benefits and options.
NOTICE AND DISCLAIMER
This is not legal advice and it is not intended that this brochure create an attorney-client relationship. The reader is advised to consult an experienced eminent domain attorney with regard to the material and issues discussed above. Use of this material in any way does NOT create a lawyer-client relationship with the attorneys of deHolczer Law PC.
This information should not be used without professional legal advice obtained in a lawyer-client relationship. Visitors are advised not to communicate confidential information to the Firm until and unless advised to do so by one of our attorneys. Without prior approval, we cannot undertake a duty of confidentiality with regard to any communication of confidential information. These materials may be downloaded only for the visitor's personal use or for non-commercial distribution.
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