Claiming A Conservation Easement Deduction? Use A Tax Attorney
One of the requirements to make a conservation easement deductible is that the conservation purpose be “protected in perpetuity”. That is a really long time. And there is recognition that maybe things will change and that in the future people will think that it would be better if we just paved everything. So there is a kind of out. If due to unexpected changes the conservation purpose can no longer be fulfilled then there can be a clause that says that the donee organization gets a cut of the proceeds.
AMT Credit Carryover Dies With The Taxpayer
The other practical observation from a planning viewpoint is to note many valuable tax attributes even for example basis in excess of value will die with the taxpayer. There may be planning opportunities that present themselves. Consider a taxpayer with large charitable carryovers or net operating losses and substantial IRA assets. It might be worth ending the income deferral while there are attributes to shelter it rather than leaving behind an income tax liability.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.