Notice of condemnation

[Rudolph Shepard Jr]

We have a small 3 bd 1 bath home that is  in the path of progress. (Highway expansion).  If I understand correctly this qualifies for a 1033 exchange if I sell outright??   The impacted area is .18 acres of a total 1.25 acres that encroaches on the house. ( house has to be removed). We will be left with just over an acre on a newly paved and widened road.  Question: If we move the house to a different location vs demolish how  would this affect the 1033 and capital gains tax. Leaving it on the remaining lot is not an option as it is being converted to commercial. Having a small loan on the house I talked with my banker and was told that moving the house would not effect the loan as long as the house stayed in my name.  Of course we will be running this by our Accountant but was hoping someone here has dealt with a similar situation.  Thanking all in advance.