South Carolina offers tax credits to landowners to encourage the preservation of farms, landscapes, and other natural, cultural, and recreational resources. As a funding mechanism for conservation, tax credits benefit everyone -- buyer, seller, and South Carolina Citizens.

Conservation land donors earn credits equal to 25% of the valueof the "gift of land conservation" or "qualified real property interest," instead of 25% percent of the "total amount of deduction" -- an important distinction.

Here is an example: A farmer donates an easement appraised at $2 million on 800 acres of farmland. He earns $200,000 SC Conservation Income Tax Credits. (Calculated as 25% of $2 million, but not more than $250 x 800 acres.)

The farmer follows tax guidelines and earns a federal charitable deduction that flows through to his state return which leaves him with a little state tax liability for the current year and future years. He prefers to sell $150,000 credits at 75 cents on the dollar to three different taxpayers instead of carrying the credits forward. The farmer is subject to income tax on the sale of the credits.

Three unrelated tax payers each purchase $50,000 in credits from the farmer at 75 cents on the dollar. Each one pays $37,500 and saves $12,500 on his SC income tax, a return of 25%.

The credit buyers enjoy a financial return and have the satisfaction of contributing to conservation efforts in the state. The farmer now has $112,500 in cash to reduce debt, set up a retirement plan, or meet other financial needs.

Yukon Property Consultants, LLC experts can map out a plan to make sure you get the most of your South Carolina easement.

YUKON
Property Consultants, LLC

Practical Solutions for Banks, Insurance Companies, Public and Private Lending Institutions, Land Developers and Investors with troubled projects

   Yukon Property Consultants,LLC
   3423 Piedmont Rd.
   Suite 500
   Atlanta, Ga. 30305
   Phone: 404 496-4100
   FAX: 404 496-4740
   yukon@yukonpropertyllc.com