New law expands CR’s tax benefits

It turns out that 2006 and 2007 will be very good years to preserve your land! On August 17, 2006 the President signed into law significant new tax incentives for conserving land. The new rules apply to conservation restrictions donated in 2006 and 2007 -extension beyond that is anyone's guess.

There are two significant changes: The amount a donor can deduct in any given year has increased from 30% to 50% of their Adjusted Gross Income (AGI), and the number of years they can carry the gift forward has been increased from 5 to 15. This is not only good for high income donors, but also means that donors with more modest incomes will be able to benefit more fully from their generosity. The law also provides gifting benefits related to IRAs.

More information can be found here.

Jennifer Dowley Article in Berkshire Trade and Commerce.