Calvin's property was taken by the State of Louisiana to build a highway overpass. He disputed the amount of the condemnation award he was to receive and ultimately collected an amount for the property plus $15,000 interest on the award. Calvin can exclude from gross income the $15,000 interest he received from the State of Louisiana associated with the condemnation award.

Question

Quizplus · Accepted Answer

Interest received as part of a condemnation award is considered taxable income and cannot be excluded from gross income.

Calvin's Property Was Taken by the State of Louisiana to Build