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.
