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Got Land?? Want tax credit?? :)

By Kara Casamassina

Real Estate Agent with International Property Management Group, LLC 91013

June 15, 2012 07:42 AM

Got land? Why not consider putting some or all of your land into a conservation easement? It doesn't cost you anything - in fact, it puts money in your pocket with tax credits!!..but hurry, those credits may be ending soon! But most importantly, it is protecting the land now and for generations to come. We have only so much green space left on our planet - we need to take measures to keep it!!

...For me - I just can't stop thinking about America's Eagles, - while they are off the endangered list AT THE MOMENT, that could change in a heartbeat. LOSS OF HABITAT IS THEIR BIGGEST THREAT!! We can't expect the government to do everything - we need to be accountable as well.

Here's a link to an eagle nest camera in Decorah, IA -- these babies are growing fast :) DECORAH EAGLE CAM

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Did you know.....

Congress recently renewed, through 2011, an incentive that enhances the tax benefits of protecting your land by donating a voluntary conservation agreement. If you own land with important natural or historic resources, donating a voluntary conservation agreement can be one of the smartest ways to conserve the land you love, while maintaining your provate property rights and possible realizing significant federal tax benefits.

These new incentives make it easier for average Americans, including working family farmers and ranchers, to donate land. The legislation:

-Raises the maximum deduction you can take for donating a volumtary conservation agreement from 30% of your adjusted gross income (AGI) to 50%

-Allows you to deduct up to 100% of your AGI if you qualify as a farmer or rancher; and

-Increases the number of years over which you can take deductions from 6 years to 16 years.

A voluntary conservation agreement, also known as a conservation easement, is a legal agreement between a landowner and a nonprofit land trust, like the Aiken Land Conservancy, or government agency that permanently limits uses of the land in order to protect important conservation values. IT ALLOWS YOU TO CONTINUE TO OWN AND USE YOUR LAND AND TO SELL IT OR PASS IT ON TO HEIRS.

When you enter into a voluntary conservation agreement with a lnad trust, you give up some of the rights associated with the land. For example, you might give up the right to subdivide your land or build additional houses, while retaining the full right to grow crops. Future owners also will be bound by the agreement's terms. The land trust is responsible for making sure the terms of the agreement are followed.

Voluntary conservation agreements vary widely. An agreement to protect rare wildlife habitat might prohibit any development there, for example, while one on a farm might allow continued farming and the building of additional agricultural structures. An agreement may apply to just a portion of the property, and need not require public access.

A conservation donation requires not only a willing donor, but a qualified conservation organization to accept the donation. That organization needs to be able to show that the donation closely fits its particular charitable mission. A land trust will not accept a donation that does not fit its mission and purposes.

A voluntary conservation agreement can help a landowner pass land on INTACT to the next generation. By limiting the land's development potential, the agreement lowers its market value, which in turn lowers estate tax. Whether the agreement is donated during life or by will, it can make a critical difference in the heirs' ability to keep the land intact.

If a conservation agreement benefits the public by permanently protecting important conservation resources and meets other federal tax code requirements, it can qualify as a tax-deductible charitable donation. The amount of the donation is the difference between the lsand's appraised value with the agreement and its value without the agreement.

To qualify as a charitable donation, a conservation agreement must be permanent. A landowner should get professional financial planning and legal advice before making such a major donation.

The Aiken Land Conservancy and the Land Trust Alliance are working to make this important conservation tool permanent, but under current law it will expire on December 31, 2011. Deductions for easements donated between 2006 and 2011 will continue to carry over. Visit to learn how you can help make the incentive permanent.www.lta.org/policy/tax-policy/

SOUTH CAROLINA TAX CREDITS:

South Carolina also offers tax credits to those who make a donation of land for conservation. In general, a TAX CREDIT is more valuable than a similar TAX DEDUCTION. A tax credit reduces the tax you pay, dollar-for-dollar.

South Carolina's tax incentive comes in the form of a tax credit equal to 25% of the fair market value of the conservation gift. THe tax credit is limited to a maximum of $52,000 per year, and to $250 per acres. The SC tax incentive allows the landowner to carry the unused portion of the credit forward indefinitely until the full credit is claimed. The SC conservation easement tax credit applies in addition to federal tax benefits. More info can be found at: http://www.sctax.org/NR/rdonlyers/2CC8B3D0-B026-4739-833C-656A941DF100/0/coneas.pdf

Also, South Carolina is one of ONLY TWO STATES where taX CREDITS CAN BE BOUGHT OR SOLD ON THE OPEN MARKET. Please visit http://www.conservesc.com/ for more information on buying and selling tax credits.

TO LEARN MORE ABOUT PROTECTING YOUR LAND WITH A VOLUNTARY CONSERVATION AGREEMENT, PLEASE CONTACT:

AIKEN LAND CONSERVANCY

KATIE ROTH, EXECUTIVE DIRECTOR

PO BOX 3096, AIKEN, SC 29802

855.252.5263

email: katieroth@bellsouth.net

Thank you to Katie Roth for granting me consent to use her information flyer for posting on my blog.