• Amenities
  • Lodge & Cellar
  • Vineyards, Orchards & Gardens
  • Village, Barn & Common Areas
  • Offerings & Discounts
• Tax Benefits
  • Tax Examples
  • Conservation Easements
  • Available Deductions
• Local Amenities
• Concierge

Available Deductions

By purchasing a Betty's Creek Properties, LLC ("BCP") membership interest, an option granted to all purchasers of a Betty's Creek home site, you maintain an interest in the ownership of the surrounding property, most of which is intended for conservation. This ownership interest, should you choose to participate, should entitle you to a share of the tax deductions and credits generated once the property is permanently preserved by a conservation easement. These expected income tax deductions and credits are generated upon the execution of a conservation easement and upon qualification by the state. An update to the appraisal will be required at that time, which will determine the actual amount of the deductions and credits.

Federal and State Income Tax Deductions:

A conservation easement deduction can shelter up to 50% of an individual's Adjusted Gross Income (AGI) from all sources, or 10% of a C-corporation's AGI, on both federal and state returns. Any excess deductions can be carried forward for up to an additional 15 years. Owners (even corporations) qualifying as ranchers or farmers can shelter up to 100% of their income for up to 16 years by completing an agricultural conservation easement.

State Tax Credits:

Georgia, North Carolina, South Carolina, Virginia, Colorado, New Mexico and several other states have created opportunities for significant tax credits via conservation easements.

For example, donors of qualified conservation land in North Carolina are eligible for a North Carolina state tax credit of 25% of the donation value of the gift, up to a limit of $250,000 for individuals and $500,000 for corporations and partnerships. Use of the tax credit can reduce state tax liability to zero. Unused state tax credits may be carried forward for up to five years.

Estate Tax Benefits:

The recognized value of the property is first reduced by the restriction of use placed on the property. In calculating estate taxes, IRS regulations then allow an "exclusion" of a portion of the value of the land encumbered with a conservation easement of up to 40% of the remaining value, up to a limit of $500,000.

Key Benefit:

Participants in conservation easements can enjoy personal satisfaction from helping to preserve ecologically significant portions of the natural environment and maintaining the essential character of farm or undeveloped land for generations to come.