Tax issues

To avoid any hazard, we must focus on the following points:-

Taxpayers must satisfy numerous statutory provisions in order to claim a non-cash charitable contribution deduction for the donation of a conservation easement. Some deficiencies revealed in examinations of conservation easements include:

    Failure to meet charitable contributions rules.
    Noncompliance with substantiation requirements.
    Inadequate documentation or lack of conservation purpose.
    Lack of perpetuity evidenced by deeds allowing for abandonment or termination of easement.
    Reserved property rights inconsistent with the claimed conservation purpose.
    Failure to comply with subordination rules.
    Failure to provide the donee organization with a right to proceeds in the event of termination.
    Use of improper appraisal methodologies and overvalued conservation easements.
    Failure to report income from the sale of state tax credits.