Practice 10C: Avoiding Fraudulent or Abusive Transactions

This guidance covers Practice 10C, which has four elements:

1. Review, on the land trust’s own behalf, each transaction for consistency with federal state income tax deduction or credit requirements 

2. ⬤ Evaluate the Form 8283 and any appraisal to determine whether the land trust has substantial concerns about the appraised value or the appraisal 

3. ⬤ Discuss substantial concerns about the appraisal, the appraised value or other terms of the transaction with legal counsel and take appropriate action, such as

   1. ⬤ (a) documenting that the land trust has shared those concerns with the donor, 

   2. ⬤ (b) seeking additional substantiation of value, 

   3. ⬤ (c) withdrawing from the transaction prior to closing or

   4. ⬤ (d) refusing to sign the Form 8283 

4. Due to recent changes in federal law, going forward Practice 10C4 is suspended until the next formal revision process for Land Trust Standards and Practices.

⬤ Accreditation indicator element | ■ Terrafirma enrollment prerequisite | ▲ Required for both