Bargain Purchase

This technique allows a landowner to realize some immediate income and longer-term tax benefits with a bargain purchase, a landowners sells property to a land trust at less than full market value and donates the reaming value.

The difference between full market value (as determined by a professional appraisal) and the sale price can be treated as a charitable contribution and can significantly reduce any capital gains taxes payable on the sale.

Benefits:

• The sale produces needed income for the landowner.
• The landowner can claim the difference between the sale and full-market value as a tax-deductible donation.

This transaction depends on the wishes of the landowner to see their land preserved and the conservation goals of the Ridge and Valley Conservancy.

Right of First Refusal

A landowner who cannot afford to donate or bargain sell their property to a land trust may consider a fight of first refusal. This gives the land trust the opportunity to match a purchase offer received by the owner at a future time if and when the owner elects to sell the property.

The Land Trust Alliance , is another good source for protection information

Please do not hesitate to contact us at rvc@goes.com
or (908) 362-7989 to discuss your property.

Return Back to Land Owner's Options