Potential Tax Benefits
The desire to protect your land is the primary reason for donating
your property, donating a conservation easement, or selling the property
as a "bargain sale" at below market value to a land trust or government
agency. However, it is frequently the tax benefits that make it possible
for landowners to make a gift that accomplishes significant protection.
There may be both state and federal income, estate and property tax
benefits for donating your land, donating a conservation easement, or
selling the property as a "bargain sale" at below market value. The
amount and type of tax benefits depend on a variety of factors, including
the legal tool you've used to protect your land, the value of the donation,
your income level and the total amount of your estate. In fact,
the pension reform bill, signed into law on Aug. 17, 2006, contains
expanded tax incentives for landowners who wish to preserve their property
by donating a voluntary conservation agreement, or easement.
The complexities of Federal tax law preclude our being able to cover
them in any great detail. Depending on the direction you decide to take
to protect your land, the value of your gift, and your personal financial
situation, your own tax result may vary greatly. State and local taxes
also play a role in this process, providing potential for additional
estate tax benefits. You will need to consult your personal accountant,
tax attorney, or financial advisor about qualifying for and using any
tax benefits associated with protecting your land because TLC does not
provide tax advice.
Chatham County Tax Administration Office
542-8251
Durham County Tax Administration Office
560-0300
Johnston County
989-5130
Lee County
Lisa Faulkner
Property Valuation Specialist
718-4660 ext.5413
Orange County
245-2100
Wake County Revenue Department
856-5400
revhelp@co.wake.nc.us
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