1.7.1.3. Offsetting of Benefits. Direct (special) benefits may offset the contributory value of the part taken and any damages to the remainder caused by the government’s project. To take into account any direct benefits from the project, appraisers must apply the before and after rule by forming an opinion of the market value of the larger parcel at the time of acquisition (excluding any enhancement or diminution resulting from the project) and deducting the market value of the remainder property (including any direct benefit or diminution from the project). 

Appraisers should note that the federal rule in this regard may be different from state rules and they should consult client agency counsel if there is a question.