Tax Examples

Owners of Betty's Creek Properties, LLC ("BCP") membership interests will be entitled to a pro-rata share of the tax deductions and state tax credits generated upon the proposed placement of permanent conservation easement restrictions on the 525 acres. The cash value to each member of these tax benefits will depend upon that member's particular tax circumstances, including but not limited to their tax bracket and state of residence.

For example, the cash value of the anticipated benefits for a North Carolina resident in the highest tax bracket would be estimated as follows:

Estimated tax deduction per membership unit:

$472,333

Federal Tax Rate:	35.00%
State Tax Rate:	7.75%
Total Tax Rate:	42.75%

Value of tax deductions at total tax rate of 42.75%:

$201,922

Plus value of est. state tax credits (worth $ for $):

$15,000

TOTAL CASH VALUE OF TAX BENEFITS:

$216,922

The above is given for example purposes only. BCP makes no guarantees or assurances regarding the tax effects to a particular investor of BCP, should a conservation easement be granted.