Your SlideShare is downloading. ×
0
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
LandTrust for Central NC - Two Rivers Seminar
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

LandTrust for Central NC - Two Rivers Seminar

827

Published on

A basic description of how the LandTrust for Central NC operates.

A basic description of how the LandTrust for Central NC operates.

Published in: Education, Technology, Business
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
827
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
8
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. The LandTrust For Central North Carolina
  • 2. DAVIE IREDELL DAVIDSON RANDOLPH ROWAN CABARRUS STANLY MONTGOMERY Yadkin River Basin RICHMOND ANSON
  • 3. # # # # # # # # # # # # # # ## # # # ## # # # # # # # # # # # # # # # # # # # # # # # # • 47 projects completed • 5702 acres protected • 4909 acres planned/pending
  • 4. Conservation Easements  Legal restriction on how property can be developed into the future.  Have been in use for nearly a century, and courts have universally upheld.  Usually perpetual (permanent), although can be done for term of years  Holding entity can be local land trust, local Soil and Water Conservation District, National Land Trust, or “sham” non-profit
  • 5. Conservation Easements (Cont)  Flexible documents custom tailored to each property or landowner  Require baseline documentation and establishment of property’s resources to be protected  Become LIABILITY of holding conservation organization! Must be monitored, and violations must be corrected.
  • 6. Conservation Values Wildlife Rivers/Streams Historic Scenic Education Farmland Habitat Riparian Land Properties Vistas Recreation
  • 7. Natural Heritage Inventory N Inventory Completed Inventory Not Begun Inventory Underway W E 20 0 20 40 Miles S
  • 8. WHY ?
  • 9. 1900 acre Cooleemee Plantation
  • 10. Pisgah Covered Bridge
  • 11. 300 acre South Yadkin Refuge
  • 12. Eagle Point Park
  • 13. 317 acre John Green Farm
  • 14. Clarke Creek Blue Heron Rookery
  • 15. Implementation & Conservation Economics 101 …Doing Well While Doing Good…
  • 16. Who Can Apply For Grants? Protection of Parks Protection of Protection of Water Resources Natural Heritage $$$ Money Available Protection of Farmland
  • 17. How Do We “Protect” Land? Conservation Easements  Restricts use of property in perpetuity; protects wildlife habitat, farmland, forest land, park lands, and natural areas  Separation of most development rights from land  Usually donated; landowner gets tax deduction
  • 18. Determining the value of Conservation Easements  100 acres of land worth $2,000/acre unrestricted 100 X $2,000 = $200,000  Easement placed on it limiting future development to no more than two new houses (one house per 50 acres)  Fair market value with the easement restrictions now $1,200/acre 100 acres X $1,200 = $120,000  Value of Conservation Easement = $80,000
  • 19. Tax Benefits of Conservation  Value is deductible for Federal Income Tax purposes, used against 30% of income, can be spread over six years  NC Income 25% Tax Credit up to $250,000 for individuals, $500,000.00 for corporations, can be spread over six years  May reduce property taxes & estate taxes
  • 20. EXAMPLE OF INCOME TAX SAVINGS Sarah & George earn $100,000 together. •They’ll pay +/- $39,000 to IRS •They’ll pay +/- $7,000 to NC DOR SARAH AND GEORGE DECIDE TO DONATE A CONSERVATION EASEMENT TO THE LANDTRUST VALUED AT $200,000 5. Can reduce reportable income to $70,000 for 6 years to IRS. • Would pay +/- $24,000 in taxes for 6 years ($90,000 savings) 6. Will get a $50,000 tax credit, therefore would pay NO state tax for 6 years ($42,000 cash savings),
  • 21. Federal Inheritance Tax  Spouse pays no tax  For 2004 no tax if estate is less than $1.5million, $2 million in 2006  39-50% current tax rate
  • 22. Section 2031( c ) Federal Tax Code  Additional Federal tax exclusion for property under easement, 40% of value of the land, excluding buildings, up to $500,000 in 2004, Property under easement must have been owned by family for at least 3 years
  • 23. Example  Davie Johnson owns 300 acre farm on Highway 73 near Concord worth $4.5 million ($15,000/acre). Davie is a widower. – If Davie dies TODAY $3,000,000 subject to Estate Tax and kids would pay approximately $1,300,000 in taxes. (kids have to sell all or part of the family farm ) - If Daniel dies in 2007 and farm is worth $6,000,000, then $4,000,000 would be subject to Estate Tax and kids would pay more than $1,500,000 in taxes. (Assuming no additional changes in Tax Code) (kids have to sell all or part of the family farm ) Can You Do Better Than That??
  • 24. YOU BET!!!  Let’s say Davie called The LandTrust and put a conservation easement on his $4.5 million dollar farm in 2004. - Appraiser deems farm to be “devalued” to $2.5 million dollars. Daniel dies 3 years later and farm appraises at $2.8 million dollars as restricted. Because of 40% permitted reduction, farm deemed to be $1.44 million and kids pay NOTHING!!!

×