Do you understand the new 2007 tax code requirements for conservation easement transactions? Do you understand how appraisers come up with the figures they do? If not, this course is for you! It provides an overview of issues involved with appraising conservation projects and the new 2007 tax code requirements for conservation easement transactions. You will become familiar with the different components of IRC §170(h), Form 8282 and Form 8283, and will be able to explain a “qualified contribution” and “qualified donee.” You will learn the basics of the techniques appraisers use to arrive at an estimation of value and how to review an appraisal for consistency with tax code requirements and with values in their regions.
This course will help provide the information a land trust needs to make the often-difficult judgment of whether a transaction is credible or not. After completing this course, you will have the tools to:
NOTE: The enhanced easement incentive discussed in chapter 2 of this publication was renewed for 2012 and 2013 but expired at the end of 2013. For the latest information on the incentive and the campaign to make it permanent, please visit http://www.landtrustalliance.org/policy
- Assess whether a proposed conservation easement donation satisfies the requirements of §170(h) of the Internal Revenue Code and the accompanying Treasury Regulations;
- Discuss with landowners the nature of the federal income and estate tax benefits that are available for a conservation easement that satisfies the Internal Revenue Code and the Treasury Regulations;
- Understand basic appraisal concepts and requirements needed to make general judgments about the credibility of appraisals; and
- Understand what responsibility a land trust has, and what responsibility it does not have, in assuring that a conservation easement donation meets Internal Revenue Code §170(h) and the Treasury Regulations, and in assessing that the valuation claimed by the donor is defendable.
Standards & Practices