Carbon County urges landowners to preserve land

Note: I’m publishing the entire article as it appeared in the Times News on June 7, 2007. Land preservation is vital to the future of Carbon County for many, many reasons. Please see Ten Things Wrong With Sprawl
Frank

Tax incentives under a new government law will end in six months

By AMY ZUBEKazubektnonline.com

Carbon County landowners have a new incentive to preserve their land federal income tax deductions.

During an informational workshop Wednesday evening, Attorney Michael Henry of Gross, McGinley, LaBarre and Eaton of Allentown and Diane Matthews-Gehringer, land preservation manager for Wildlands Conservancy, spoke to the county landowners in attendance about tax benefits the government has created for preserving Pennsylvania farm and woodlands. The new law, which went into effect in 2006, will expire at the end of 2007. Members of the Wildlands Conservancy urge landowners to consider utilizing this incentive that will end shortly.

Matthews-Gehringer explained that landowners have a variety of different options when deciding how to preserve their land. These include conservation easements, land donation, bargain sales or a combination of the above options.

If a landowner decides to enter into one of these agreements, a contract is drawn up with specifications that the landowner wants. The plans are flexible.

The property is then appraised twice, once to obtain the unrestricted value, and once to obtain the restricted, or “best other use” value of the property. The donation price is the difference of these two figures. For example, if a property is worth $400,000 unrestricted and $250,000 restricted, the total amount of the donation will be $150,000. This value is the amount landowners can use in the tax deductions.

Once properties are preserved, landowners can continue to work the land but have a few restrictions such as subdividing the property, which would be negotiated at the time of the donation.

Henry, who specializes in local, state and federal taxation, tax and estate planning and real estate law, also explained that under the new law created by the government for 2007 donations only, landowners who choose to participate in this program can deduct 50 percent, (and up to 100 percent for farmer or ranchers who have met the income requirements,) from their adjusted gross income on federal income tax forms. This applies to the year of the donation plus the next 15 years.

For example, he said if a landowner has a “$50,000 income and a donation of easement valued at $200,000,” non-farmers can deduct $25,000 a year for eight years. For farmers and ranchers, they can deduct $50,000 a year for four years or until they have met their deductions.

For more information on the Wildlands Conservancy or preserving your land, visit www.wildlandspa.org.