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This page discusses income tax implications regarding r/w property acquisitions. It addresses local public agency authority.

Section 26: Information for Income Tax Purposes for Property Owners (for LPA)

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Generally, the State's policy also applies where LPA's are acquiring right of way under contractual agreement with TxDOT. However, the responsibility for and the method of furnishing such information will be as follows:

  • Any breakdown of the total consideration paid between compensation for property acquired and compensation for damages to the owner's remaining property is not to be documented in the deed but may be documented in a separate agreement or contract of sale. This separate agreement with the property owner is strictly a responsibility of the LPA.
  • TxDOT's approved value is for the sole purpose of establishing the maximum amount in which TxDOT will participate. This does not in any way restrict the LPA in negotiations or in what they consider to be damages. Therefore, TxDOT will not be party to any agreement or contract of sale between a property owner and the LPA. Thus, TxDOT will not be involved in any monetary breakdown made for tax purposes.
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