Friday, October 29, 2004

For 1031 Exchange Investors/ Pros and Cons of Conservation Easements 

“The volatile environment surrounding conservation easements makes it important to tread carefully when working on a deal involving one, “ says REALTOR Magazine.

“ Sellers who've previously ceded development rights may have focused on the tax breaks but not on how the restrictions would impact a future sale.

Given the above, my advice to you is that if you are considering placing land into a conservation easement is: 1) Defer to the experts, and 2) Make sure you have a thorough understanding of the terms of the conservation easement, how it's managed, and by whom. I always encourage my clients to hire an attorney. S/he can spell out what the conservation easement does and does not allow, and help you sort through the details of such a transaction, especially now that IRS scrutiny is amplified.

“Because valuation is at the core of many IRS concerns, getting a good appraiser is key to ensuring that the appraisal is neither inflated nor undervalued,” says Clayton Andrews, managing broker of Sotheby's International Realty in Jackson, Wyo., and a member of the Jackson Hole Land Trust's Open Space Advisory Council.

With the above caveat in mind….Conservation-minded buyers who are interested in owning permanently protected property with high scenic, open space, and natural resource value will find many opportunities here in the Greater Asheville area.

Contact ecoSTEWARD@janeAnne.com for information.

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