[Carry_Okie]

.

[NorthGA]

I am not sure the writer really understood this issue. The property seller gets to deduct some capital gains due to covenant restrictions of his choosing - but the buyer is rarely the nature conservatory or a like group.

We have some farm land and investigated this when we considered selling it. For example, I can add a covenant restriction of "no clear cutting" and receive a tax advantage of some amount. But the buyer is someone else - like a developer, another farmer, a forester (who can still select cut), etc.

The land trust people do not have the money to buy the land, they just enforce whatever covenants are made. Any covenant is between buyer and seller - just like exists today on other restrictions.

For example of how this works now - The local power company has an easement across our land. Any buyer has to decide if they want to buy property with that easement - or restriction if you will. It is up to the power company to enforce that easement. With a covenant restriction of "no clear cutting", or "no development within 25 feet of river",the land trust people would enforce the covenant.

[Eric in the Ozarks]

Never overlook the fact that Farm Bureau is just another insurance company that happens to have "FARM" in its name. It doesn't speak for anyone but insurance executives and its hand-picked dupe board of directors.

[farmfriend]

S.476

SEC. 121A. 25-PERCENT EXCLUSION OF GAIN ON SALES OR EXCHANGES OF LAND OR WATER INTERESTS TO ELIGIBLE ENTITIES FOR CONSERVATION PURPOSES.

a) EXCLUSION- Gross income shall not include 25 percent of the qualifying gain from a conservation sale of a long-held qualifying land or water interest.

CONSERVATION SALE- For purposes of this section, the term `conservation sale' means a sale or exchange which meets the following requirements:
`(1) TRANSFEREE IS AN ELIGIBLE ENTITY- The transferee of the long-held qualifying land or water interest is an eligible entity.

`(1) ELIGIBLE ENTITY- The term `eligible entity' means--

`(A) a governmental unit referred to in section 170(c)(1), or an agency or department thereof operated primarily for 1 or more of the conservation purposes specified in clause (i), (ii), or (iii) of section 170(h)(4)(A), or

`(B) an entity which is--

`(i) described in section 170(b)(1)(A)(vi) or section 170(h)(3)(B), and

`(ii) organized and at all times operated primarily for 1 or more of the conservation purposes specified in clause (i), (ii), or (iii) of section 170(h)(4)(A).

Amendments:

S.AMDT.526 to S.476 To provide a manager's amendment. Sponsor: Sen Grassley, Charles E. [IA] (introduced 4/8/2003) Cosponsors: 1 Latest Major Action: 4/8/2003 Senate amendment agreed to. Status: Amendment SA 526 agreed to in Senate by Unanimous Consent.

S.AMDT.527 to S.476 To exclude 25 percent of gain on sales or exchanges of land or water interests to any nonprofit entity for any charitable purpose. Sponsor: Sen Nickles, Don [OK] (introduced 4/9/2003) Cosponsors: (none) Latest Major Action: 4/9/2003 Motion to table amendment SA 527 agreed to in Senate by Yea-Nay Vote. 62 - 38. Record Vote Number: 127.

Latest Major Action: 4/9/2003 Passed/agreed to in Senate. Status: Passed Senate with an amendment by Yea-Nay Vote. 95 - 5. Record Vote Number: 128. b