The Warren Land Trust, Inc. is a non-profit corporation and duly qualified 501(c)(3) organization. Therefore, all gifts to the Land Trust are tax-deductible to full extent permitted by law.
Assistance to Donors. We work closely with our donors to help facilitate their gifts to the Land Trust.
Tax Law. You may take a tax deduction for the fair market value of your gift that is equal to 50 percent of your adjusted gross income each year, and you may "roll over" any un-used portion of this deduction for fifteen years after the year in which you made your gift.
Giving Land To The Warren Land Trust
Deed. If you wish to give land to the Land Trust, a deed from you to the Land Trust can be prepared by our attorney or your attorney. The deed can include restrictions concerning the future use of the property, if you so desire, and is recorded with the Warren Town Clerk. No conveyance taxes are due for any donation to a land trust. You should bear in mind that the configuration of the land being donated could affect the value of the land. For example, a parcel that meets local subdivision requirements would have a higher fair market value than a parcel with insufficient access for a subdivision.
Appraisal. A written appraisal by a qualified real estate appraiser is always required in order to receive a tax deduction for land donated to a land trust. The fair market value of the property, as determined by the appraisal, is the value of your charitable donation to the Warren Land Trust.
Example of Tax Benefits:
John and Mary have adjusted gross income of $300,000 in 2012 and each year after that.
In 2012, they donate land with an appraised value of $500,000 to the Warren Land Trust.
In 2012, they elect to take the maximum tax deduction of $150,000 (50% of adjusted gross income)
In years 2013 – 2028, they "roll over" the remainder of this $500,000 tax deduction ($350,000) until it is used up.
Giving A Conservation Restriction To The Warren Land Trust
Conservation Restriction. If you prefer to retain ownership of your property and, at the same time, ensure that it will never be developed, you may prefer to grant the Land Trust a Conservation Restriction (sometimes called a Conservation Easement). The Conservation Restriction is recorded on the Warren Land Records and prohibits future development of your property, except as permitted in the Conservation Restriction. The Land Trust is happy to provide a sample Conservation Restriction for your review. This document can be customized to reflect the special conditions of your property and exactly how it should be used in the future.
Appraisal. A written appraisal is also required in order to receive a tax deduction for the donation of a Conservation Restriction to the Land Trust. However, an appraisal for a Conservation Restriction is more complicated in that the appraiser must place two values on the land: (1) its value without the restriction and (2) its value with the restriction. The difference between these two values is the value of your charitable donation to the Warren Land Trust.
Example of Tax Benefits:
John and Mary's 50 acres are worth $200,000 undeveloped.
These same 50 acres are worth $600,000 as a developed parcel (perhaps as subdivision lots)
The value of their charitable donation (and potential tax deduction) is $400,000.
*CAVEAT: This is not intended as a comprehensive summary of all tax issues or all ways of donating land (or conservation restrictions) to the Warren Land Trust. Please see your attorney and accountant for additional information. The Warren Land Trust does not give Tax advice to our donors.