January 2013
A significant tax deduction is available to property owners who voluntarily elect to preserve natural resource areas from future development. In order to qualify for the charitable deduction, the natural resource area must meet some specific technical requirements as defined in Section 170 of the IRS tax code. The most common deduction is allowed when the natural resource area represents a fairly natural form of terrestrial or aquatic habitat. In other instances, property devalued by conservation easements can be used to minimize inheritance tax.
A property owner does not have to vacate ownership of the parcel to qualify for the deduction. Alternatively, the owner only needs to convey a restrictive easement (Conservation Easement) to a qualifying charitable organization. The easement identifies approved uses of the property and is granted in perpetuity to the charitable organization. The charitable organization’s role is to provide independent third party supervision of site use to ensure adherence to easement restrictions.
The scientists and engineers at Terra Technologies work closely with a local qualified third party conservation easement supervisor known as the Midwest Mitigation Oversight Association (MMOA) to evaluate the ecological value of potential qualifying sites. More information about the MMOA can be referenced at www.midwestmoa.com .
The value of the deduction is determined by an appraiser. Contact your local Terra Technologies office for more information. |
