Given the current activities in Washington DC, the Enhanced Tax Incentive has been extended through December 31, 2013. What that means is any person wishing to donate conserved land through a conservation easement can continue to receive possible significant federal tax benefits. A land owner can receive federal tax benefits by adhering to the IRC section 170(h)(2) which covers the Donations of Conservation Easements (and other partial interests). The 2013 extended enhanced incentive allows a donor to use a conservation donation deduction to deduct 50% of their gross income in any year, up from the normal 30% that is a permanent part of the law. This temporary break will also allow a donor to carry forward any unused write-off for a full 15 years, instead of the normal five. However if the donor is by occupation a farmer or rancher their respective offset can be up to 100% of their adjusted gross income with a conservation easement donation. This could possibly take out any taxable income based on this offset up to 15 years instead of the normal five years.
Affinity Valuation Group, LLC has extensive training and experience on appraising properties impacted by conservation easements. It is important to note that part of the 2006 US Pension Protection Act targets the potential abuse of substantial or gross misstatements of value. The appraisers at Affinity Valuation Group, LLC understand the importance of remaining impartial and at the same time provide sound and accurate valuation methods. Paul K. Bidwell, MAI, ASA, CCIM is considered a “qualified appraiser” under the new IRS rules which indicates that the appraiser must “demonstrate verifiable education and experience in valuing the type of property subject to the appraisal.”
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