Land Development

Berkshire Hathaway

FAQs Conservation

Q: What is Land Conservation as defined by the federal government?

A: Current Federal legislation grants federal income tax benefits to landowners who wish to place an easement on their land deed restricting (but not necessarily eliminating) future development of that land.

Q: How can this benefit me?

A: The federal income tax savings benefit landowners with both moderate and high incomes. The legislation allows qualifying landowners to protect 30% of their Adjusted Gross Income (AGI) from federal taxes. If the land owner cannot use all of the benefit in the first year the excess can be used for up to 5 additional years. Both individuals and corporations qualify although corporations may protect only 10% of their taxable income.

Q: Do I have to sell my property?

A: No. You may retain ownership of your property, pass it onto your heirs or sell the property.

Q: Can I still develop my property into more than one parcel?

A: Yes, but with some restrictions. You cannot develop it beyond the restrictions dictated in the conservation easement.

Q: Are there any guidelines which I must follow?

A: Yes. Strict guidelines have been established by both the Internal Revenue Code and the Conservation Trust which must be a party to this transaction.

Q: Why should I use the Berkshire Hathaway HomeServices Fox & Roach Land Conservation team?

A: We have the ability to manage the process from the beginning to the end. The team at Land Conservation has developed alliances with conservation groups, attorneys and accountants who understand the requirements of the conservation process.

Q: Can I complete this process myself?

A: No, you will need the services of attorneys, land appraisers and accountants who have experience with the land conservation process. Additionally, a qualified land conservation trust must be part of the transaction. Mistakes cost time and potentially IRS penalties.

Q: Do I need to sign a contract with Berkshire Hathaway HomeServices Fox and Roach Land Conservation?

A: Yes, you will need to sign a contract for a small percentage of the tax savings you realize plus a real estate commission on any land sale (should you choose to sell the land).