Federal Tax Issues: Fall 2024 Tax Update

Explore four hot tax topics important to land conservation with attorney and Alliance Conservation Defense Manager Diana Norris. First, in recent cases, the Tax Court has relied on the role and expertise of the land trust in determining the impact of the exercise of reserved rights, such as fixing the location of build areas, but how does that work on an operational level for a land trust? Second, the Tax Court invalidated the Treasury regulation requiring a proceeds clause. How can land trusts protect their interests in the absence of the proceeds regulation? Third, we have lived with the revised Form 8283 for a few months. What are the biggest changes and areas of confusion for land trusts when reviewing a donor’s form? The IRS isn’t currently providing more clarity so let’s wade through some of the murky issues.

Additional Topic: New October 2024 Treasury regulations regarding pass-through entities.

On October 8, 2024 the Treasury published final regulations that have important implications for land trusts working on easement or land donations from pass-through entities such as a partnership or limited liability company. Since 2017, Land Trust Standards and Practices has prohibited participating in abusive syndicated conservation easement transactions (and land donations) under Standard Practice Element 10C4.

The regulations just changed, but let’s narrow the applicability—these regulations are requirements to report and disclose information for the IRS to identify tax avoidance transactions. They only apply to federal tax deduction donations made by pass-through entities, most commonly limited liability companies, that meet the three elements of a syndicated transaction.

This webinar is included in the 2024 All-Access Pass.

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