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| Conservation Options |
The Rancocas Conservancy works with landowners
to design land preservation deals that are a win-win
for all. There are many variations of land protection
that will affect the landowner's continuing use
and benefit. These include a conservation easement,
fee acquisition, reserve life estate or remainder
interest, and bequest. Each is briefly described
below. For more detailed information, please call
us at (609) 859-8860 ext. 17 or email us at rancocas@bigfoot.com.
These land preservation techniques can be accomplished
through a donation, bargain sale or sale for full
value. A bargain sale is a sale at less than the
appraised fair market value; donation is an outright
gift for no financial remuneration. The Internal
Revenue Service allows an income tax deduction for
qualified conservation donations of either a part
or the entire value of a property. The Rancocas
Conservancy strongly urges landowners to consult
with their personal tax advisors regarding eligible
deductions. |
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| Conservation Easement |
A landowner may donate or sell a conservation
easement on his/her property. A conservation easement
is a legal restriction that prohibits subdivision
and development on a property. It also restricts
activities on the property that would have a negative
effect on the natural characteristics of the property.
These restrictions are usually tailored to each
specific property and landowner. Restrictions may
include limits on cutting trees and native plant
species, limits on soil disturbance, protective
measures for stream corridors, and limits on the
use of motorized vehicles including ATVs.
A conservation easement may include provisions
for agricultural and recreational uses, and continuing
single residential use by the property owner. A
conservation easement may substantially reduce the
value of the property for inheritance tax purposes,
enabling the land to remain in the family rather
than be sold to pay the estate taxes. The land remains
in private ownership and the Rancocas Conservancy
is responsible for monitoring and defending the
restrictions with the property owners, current and
future. |
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| Fee Simple Acquisition |
| A fee simple acquisition by Rancocas Conservancy
is the sale or gift of the property by deed to our
organization. Rancocas Conservancy becomes the owner
of the land, which is restricted as permanent open
space. In some cases, the land may be transferred
to a public agency as an addition to parkland. This
can provide tax benefits and cash value to the landowner. |
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| Reserved Life Estate or
Remainder Interest |
| With a reserved life estate or remainder interest
the land is transferred to Rancocas Conservancy immediately
and the owner reserves the use of the property for
his or her lifetime. This right may be designed to
benefit family generations. This allows the landowner
to receive an income tax benefit during his or her
lifetime, and removes the value of the property from
the estate. |
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| Bequest |
| With a bequest, the landowner conveys the property
to Rancocas Conservancy at the time of his or her
death through a will. This removes the value of the
property from the estate for inheritance tax purposes.
The addition of a conservation easement ensures that
the property will be permanently protected. |
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| Financial Benefits of Land
Preservation |
Land preservation benefits the landowner as well
as his/her surrounding communities. For every single
family home built, municipalities in our region
assess $4,000, $10,000, and sometimes more in property
taxes. However, the cost to provide utilities, roadways,
police and firefighter services, education, and
all of the amenities that we expect far exceeds
the increase in tax revenue. Over-development is
a financial drain on the municipalities of our region.
With better planning for land preservation and focused
development, municipalities might avoid sprawl,
preserve the character of their town center, provide
recreation space for their residents and protect
the water supply and air quality for their community.
Landowners who preserve their lands may also derive
a financial benefit. The landowner may be eligible
to receive tax benefits by being able to deduct
the value of a donation of land, or a donation of
the development rights on the land, from his or
her taxes for up to six years. A landowner who restricts
development on his or her property by placing a
conservation easement on the property may also reduce
annual property taxes. Rancocas Conservancy strongly
urges landowners to consult with their personal
tax advisors regarding eligible deductions.
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