I have a situation and want to make sure that I am handling right. The county came in and took 30% of his land that he purchased for $4,000.00 1099-S is for $124,599. He has attorney costs which I know I can take. My question is he built a house on this land and the county took land that prevents any sort of addition to the house in front (to close to the highway), does he need to get an appraisal of the "loss" to the value of the home since the county came in? He did get an appraisal for the land that was taken; but I don't believe that would enter into this? Thanks for any assistance.....Jeff