EAGLESTAR.NET LAND AND PROPERTY REVIEW
http://www.eaglestar.net
Issue #4
Feb. 18, 2008

IN THIS ISSUE:
Properties of the Week
Conservation Easement Q&A
Buyer's List News
Landterms.com Term of the Week: Fire regime

"We do not inherit the land from our ancestors, we borrow it from our children."
- Native American Proverb


PROPERTIES OF THE WEEK
Each issue we feature several properties that we find especially interesting.

Property #1 - Seclusion and exceptional views on 35 acres in southern Colorado. Pinyon-juniper forest, some ponderosa pine, several suitable building sites. Nearby access to Grape Creek and BLM land. See photos and contact information at http://www.eaglestar.net/wsmn28-.html.

Property #2 - Private estate or development opportunity on 30 acres in Newport, Tennessee. 3,000 sq. ft. home overlooks Douglas Lake. Close to Knoxville, TN and 1 hour from Asheville, NC. Photos and additional information at http://www.eaglestar.net/fmr20-.html.

Property #3 - Conservation or development opportunity on 260 acres in Swan Valley, Idaho. Property overlooks South Fork of the Snake River. Near national forest, Palisades Reservoir, and 1 hour from Jackson, WY. View photos and details at http://www.eaglestar.net/flck3-.html.

Property #4 - Southern Colorado horse property. 73 acres, lush meadows and hayfields, views of Wet and Sangre de Cristo Mountains. Developed spring at one homesite, with power and phone. Close to Westcliffe, CO. To see photos and additional information, visit http://www.eaglestar.net/wsmn19-.html.


CONSERVATION EASEMENTS: TAX-DEDUCTIBLE PROTECTION OF AMERICA'S NATURAL RESOURCES
A relatively old legal tool has been gaining recent popularity, helping landowners to protect valuable habitat and open space, preserve conservation values, and maybe even earn a tax break at the same time. Conservation easements currently protect more than 5 million acres of private land in the United States. A common misconception is that conservation easements prohibit activities like forestry, farming, or ranching. In fact, they are often designed to ensure that these types of operations are able to continue.

Q: What is a conservation easement?
A: It is a non-possessory interest in the private property of another. It is created by legal agreement between a landowner and a land trust or government agency. The owner usually agrees to give up development rights on his private property, while retaining the right to sell, lease, give, or will the property to anyone he or she chooses. All subsequent owners and lessees are legally bound by the conservation easement agreement. In return for giving up these rights, the land trust or other recipient agrees to enforce the land use restrictions of the conservation easement, and to provide stewardship for the easement.

Q: What are the benefits of conservation easements?
A: Preservation of land, open space, water, wildlife habitat, and other natural resources is important to many folks who own rural properties, and especially so if they have made a living from that land. Conservation easements offer a way to protect and preserve conservation values without government regulations in a way that is sensitive to the needs of nature, the land, and the landowner. If an easement benefits the public by permanently protecting valuable natural resources, as well as meeting other federal tax code requirements, it may offer a tax deduction to the property owner. The deduction is typically equal to the difference between the value of the property without the easement and the value with the easement in place. Another tax benefit is that a conservation easement typically lowers the market value of a property, so estate taxes are lower when the property passes from an owner to his or her heirs.

Q: Are there tax deduction limits for conservation easements?
A: Yes. In 2006, Congress enacted legislation increasing the allowable tax deduction for donated conservation easements from 30% to 50% of yearly adjusted gross income (AGI), with farmers and ranchers who donate easements allowed to deduct up to 100% of their AGI's. The allowable period for taking deductions for voluntary easements was also increased from 5 to 15 years. However, these expired on December 31, 2007. Advocates such as the Land Trust Alliance (http://www.lta.org), which represents some 1,600 U.S. conservation organizations, are urging people to contact their members of the U.S. House of Representatives and Senate within the next TWO WEEKS and urge support for the Senate Farm Bill and HR 1576, which would make the easement tax incentives permanent. Conservation easements must meet certain requirements in order to qualify as tax-deductible charitable donations. Contact the Land Trust Alliance if you are interested in a conservation easement on your property.

Q: What types of properties qualify for conservation easements?
A: If you own rural, undeveloped property, you might be surprised to find that your property may qualify for a tax-deductible conservation easement. Many conservation easements protect wildlife, corridors linking habitat fragments, endangered wetlands, and routes important to migratory birds. Other areas covered by conservation easements include riparian areas, rare landscape features, and rivers, lakes, and other bodies of water. However, it is not necessary for your parcel to have any of these in order to qualify for a tax-deductible conservation easement. Many easements are implemented in order to protect open space, as is often the case with ranching or farming properties. In fact, conservation easement agreements are often quite flexible and can be created so that future development is prevented, while allowing for the installation of necessary ranching and farming structures.

Q: Can I sell a conservation easement?
A: Yes, although it is more common for landowners to donate conservation easements in order to realize the tax benefits. Of course, most landowners also appreciate the opportunity to have a direct say in how the conservation values on their land are preserved for generations to come. Most conservation organizations and land trusts are non-profit, and it is more cost-effective for them to provide assistance with and information about conservation easements than to actually raise the money to purchase them. There are, however, some organizations that will purchase certain conservation easements.

For more in-depth information, see the February 14, 2008 Landterms.com Blog on conservation easements at http://landterms.com/Blog/index.html.

For information and assistance on obtaining a conservation easement in your area, see the Land Trust Alliance website at http://www.lta.org.


BUYER'S LIST NEWS
Buyer listings are free to place and offer even more properties available for sale. Place your listing describing your ideal property at https://www.eaglestar.net/pages/buyers.html.

Browse over 850 buyer listings, searchable by keyword, at http://www.eaglestar.net/Land_Buyers_List/index.html.

Buyer looking for 40 acres rural, undeveloped land with building site in Utah, Nevada, or Orgeon. Please refer to buyer #20320.

Wanted: Single-family homes to remodel or small parcels of raw land with development potential in southwest Virginia. Please refer to buyer #20300.

Oklahoma: Looking for 500+ acre cattle ranch with farm house, mountains, bluffs, and water. Please refer to buyer #20299.


LANDTERMS.COM TERM OF THE WEEK
http://landterms.com
Every issue we feature a real estate, forestry, natural sciences or other land-related term from our partner site, Landterms.com.

This week's term is:
Fire regime - The historic natural or man-made fire patterns in a given area; the frequency, intensity, severity, and distribution of historic fires, especially wildfires.

More Fire Ecology, Forestry, and Restoration terms at http://landterms.com/categories.html.


SUGGESTIONS
We welcome reader suggestions, comments, and questions.
Email: newsletter@eaglestar.net

Copyright 2008 All Rights Reserved