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The Farm Bill (H.R. 2419) which Congress enacted on May 22, 2008 includes a powerful tax incentive which has helped conserve over a half a million acres of natural areas, farms, and ranches across the US. The incentive had expired January 1st, but is now retroactive to the beginning of the year and will last through 2009.
The incentive, which applies to a landowner's federal income tax, will:
- Raise the deduction a donor can take for donating a voluntary conservation agreement from 30% of their income in any year to 50%;
- Allow farmers and ranchers to deduct up to 100% of their income; and
- Increase the number of years over which a donor can take deductions from 5 to 15 succeeding years.
Here is an example of how these tax deductions can help.
Here is the IRS code (Internal Revenue Bulletin: 2007-25 ) for the extended tax provisions.
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Introductory Articles
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- Tax Benefits of Donating Conservation Land
- Tax Benefits of Donating Conservation Land. By:Robert Levin. There are several kinds of tax benefits available to donors of land or. conservation easements. This article attempts to summarize these benefits and provide some. examples of how they work. ...
- Estate Tax Update
- Estate Tax Update. Recent changes to the estate tax may have left some taxpayers unclear on their likely estate tax obligations. Both the annual life time exemption and the applicable tax rate have been the subject of recent changes.Under legislation passed in 2001, the U.S. estate tax exemption level has b ...
- Hypothetical Examples of the Tax Benefits of Donating Conservation Land
- Hypothetical Examples of the Tax Benefits of Donating Conservation Land. By: Robert Levin. The following numbers are purely hypothetical and are not to be relied on by anyone as a representation or guarantee of tax results. These numbers have been simplified and approximated and do not represent predictions for any ...
- Easements: A Tool for Family and Business Planning
- Conservation Easements: A Tool for Family and Business Planning that Preserves Your Land. The unprecedented rise in real estate values in many parts of the country has produced new wealth but also new difficulties for landowners who want to pass cherished property to their heirs. This year, the federal estate tax ...
- Save Money on Taxes and Protect Open Space
- Conservation Easement Income Tax Credits. Save Money on Taxes and Protect Open Space: Conservation Easement Income Tax Credits You can save thousands of dollars on your state income tax bill by participating in the state of Colorado’s unique conservation easement income tax credit program and help preserve Colorado’ ...
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Articles for Professionals
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- Farm & Ranch Estate Planning
- Rally 2002 Session 4K Farm & Ranch Estate Planning Jeremiah P. Cosgrove Ryland Howard. 2002 FARM CONSERVATION TAX UPDATE By Jerry Cosgrove, Attorney, American Farmland Trust Co-author, Your Land is Your Legacy: A Guide to Planning for the Future of Your Farm n September 1999, American Farmland Trust published a ...
- Federal Estate and Gift Tax Consequences of Donated Term Conservation Easements
- LAND TRUST ALLIANCE Exchange Summer 2000 25 Term conservation easements are conservation easements that are not perpetual, but, rather, restrict the property for a term of years. After the term has expired, the conservation easement restrictions terminate and no longer affect the land. Term conserva ...
- Estate Planning Opportunities
- Low Interest Rates Offer Estate Planning Opportunities By. James A. Houle, Esq.. Many of us have used the current low interest rates to save money by refinancing our homes and businesses. But attractive rates can also offer even better opportunities to save on gift and estate taxes, which now apply to tra ...
- AGRICULTURAL CONSERVATION EASEMENTS
- AGRICULTURAL CONSERVATION EASEMENTS. DESCRIPTION A conservation easement is a deed restriction landowners voluntarily place on their property to protect resources such as productive agricultural land, ground and surface water, wildlife habitat, historic sites or scenic views. They are used by landowners (granto ...
- Appraisals and Valuation
- Appraisals and Valuations - HOW THE GIFT IS VALUED. By: Stephen J. Small, Esq.. For purposes of the tax rules, the "value" of a property is equal to what it would sell for if it were put to the most valuable economic use that is possible under the circumstances. In many cases (though not all) with land t ...
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Connect with local counsel
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Internet Resources
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