"Empowering people to preserve land in the
Ozarks"
Trade Lands |
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Trade lands (not the same as Land Exchanges) is a term that refers to the donation of non-conservation land to ORLT which is then sold to purchase conservation lands. This is arranged with the knowledge of the landowner. Often, but not always, the landowner has a low basis in the non-conservation land and would pay significant capital gains if they sold the property. Instead they donate the property to ORLT receiving a tax deduction on the full market value and avoiding all capital gains taxes. ORLT can then maximize the total value of the charitable gift and direct the proceeds to be used for a particular land conservation project which perhaps the donor wanted to fund. Landowners sometimes gift property (at current value) which is difficult to sell at present and going down in value. ORLT can either sell it now or hold the property until market conditions improve. ORLT has been gifted one lake lot and one urban lot (both undeveloped) and two rental properties as trade lands in the past. Three of these properties have been sold and the proceeds used to purchase conservation land. In two cases the donor directed us to use the proceeds from the sale to fund a particular project. |
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