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The
High Falls
Conservation Area was purchased
by CLC in a bargain sale arrangement |
If a landowner needs
immediate income and is considering selling his or her land,
but would like the property to be permanently protected,
selling the land or a
conservation easement
to CLC through a
bargain sale might be an ideal situation, provided CLC can
raise the funds.
In
a bargain sale, a landowner sells land or a conservation
easement to CLC for less than its appraised, full fair market value.
A bargain sale makes a conservation project
more affordable for CLC and offers several benefits
to the landowner.
It provides cash at the closing of the sale, reduces capital gains
tax by reducing the amount of income generated from
the sale, and entitles the seller to a
charitable income tax deduction based on the difference
between the land’s fair market value and its purchase price.
Bargain
sales help the Conservancy carry out a variety of land protection projects. For example, the
High Falls Conservation Area (pictured left) was purchased
through a bargain sale arrangement that enabled the landowner to
take advantage of tax benefits while the Conservancy was able
to raise the funds
necessary to acquire the property.
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