Tax Consequences of Conservation Easements
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ChetR
On
September - 8 - 2011 0 Comment
I’m trying to sort out alternatives for donating conservation easements and their tax consequences. I’d like feedback on whether I understand correctly and any alternatives.
Let’s say the CE has a value of $200,000 and the legal and appraisal costs are $5,000.
Scenario 1: The donor pays the $5,000 costs and gets a tax deduction of $200,000.
• The $200,000 can be used against 50% of AGI (Adjusted Gross Income) for 2011 federal taxes and carried forward 15 more years or until it is...
Rich “Conservation Easement” Tax Break Ends 12/31/11
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ChetR
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June - 5 - 2011 0 Comment
Well written series: When I come across particularly good articles, I’ll pass them along here
May. 4 2011
By ROBERT W. WOOD
The year-end compromise
tax deal put a 2 year band aid on the Bush tax cuts and a generous...
Tax Benefits of Conservation Easements
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ChetR
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June - 5 - 2011 0 Comment
Well written series: When I come across particularly good articles, I’ll pass them along here
By John D. Hutchinson, V
Western Virginia Land Trust
Virginia Forest Landowner Update
Summer 2000 -- Volume 14, No. 3
Before entering into a conservation easement of any kind, landowners should consult with their attorneys. If an easement donor intends to ca...
What is a Conservation Easement and Why is it Important?
Posted by
ChetR
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June - 5 - 2011 0 Comment
Well written series: When I come across particularly good articles, I’ll pass them along here
April 24, 2010 by
trouthead
A conservation easement is a flexible tool that allows private landowners to retain title to the land while permanently protecting agricu...
Rally 2010 IRS Panel Highlights
Posted by
ChetR
On
June - 5 - 2011 0 Comment
At
Rally 2010, the Land Trust Alliance again invited three senior Internal Revenue Service officials to answer questions on IRS scrutiny of conservation easements. The following is a summary of some of the points made by Karin Gross, Supervisory Attorney, IRS Office of the Chief Counsel (DC), Marc Caine, IRS Attorney (NY) and Ron Cerruti, IRS Engineering and Valuation Territory Manager (CA). A...
IRS Form 8283 and Appraisal Rules
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ChetR
On
June - 5 - 2011 0 Comment
Well written series: When I come across particularly good articles, I’ll pass them along here
If a person or an estate makes a noncash charitable contribution greater than $500, IRS Form 8283 must be included with his, her or its tax return. If the property is not publicly traded stock that may be valued on an exchange and exceeds $5,000 in value ($10,000 for closely held stock), a qualified appraisal is required. The appraisal must be made not earlier than 60 days...
Determination of the Entire Contiguous Parcel
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ChetR
On
June - 5 - 2011 0 Comment
Courts to IRS: Ease Up on Conservation Easement Valuations
Posted by
ChetR
On
June - 5 - 2011 0 Comment
Well written series: When I come across particularly good articles, I’ll pass them along here
This article, after reviewing the general requirements for the income tax deduction and applicable limitations,reviews court decisions addressing the valuation of conservation easements and concludes that courts largelyreject the IRS’s zero or negligible valuation position and find significant value in conservation easements.
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Conservation Easement Issue Identification Worksheet
Posted by
ChetR
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June - 5 - 2011 0 Comment
IRS Panelists at Rally 2010 Provide Advice to Land Trusts
At LTA Rally 2010, three senior Internal Revenue Service officials answered questions on IRS scrutiny of conservation easements. They also shared copies of this worksheet used by revenue agents reviewing conservation easements. This is a good checklist to review your appraisals of conservation easements.
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Accuracy-Related Penalties
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ChetR
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June - 5 - 2011 0 Comment
Well written series: When I come across particularly good articles, I’ll pass them along here
The Pension Act imposes accuracy-related penalties of 20 percent for an underpayment of tax resulting from a “substantial” valuation misstatement, and 40 percent for a “gross” valuation misstatement. A “substantial” valuation misstatement is a value 150 percent or more of the amount determined to be the correct value, and a “gross” valuation tatement is a v...
