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LakeAnnaLifeTimesAugustSeptember 2015 12 SpecialPeopleAndPlacesOf Lake BUILDING MATERIALS and HARDWARE WE DELIVER QUALITY Plus Paints Tool Rental and Composite Deck Dock Products limits present and future property development rights. It allows the landowner to live on the property and use it for its traditional use e.g. as a farm forest open space and or natural area but protects it as well. The easement is legally recorded and bound to the deed of the property perma- nently. The Virginia Outdoors Foundation holds easements in perpetuity that protect a wide variety of natural and cultural resources including watershed areas the setting for historic homes scenic views lands adjacent to public parks and game preserves community lands and more. The gift of an open-space easement in perpetuity to the Virginia Outdoors Foundation VOF may qualify as a non- cash charitable gift providing the donor with various tax benefits. A donor applying for tax benefits must hire an independent certified ap- praiser to establish the value of the easement which value is primarily based on the value of the development rights forgone. Once that value is established it becomes the basis for calculating tax benefits. Donations of open-space easements that meet federal tax code requirements may entitle the donor to federal income tax deductions. For tax year 2015 the deduction is limited to 30 of adjusted gross income which if not used up in 2015 may be carried forward at 30 of adjusted gross income for an additional five years or until the donation is fully expended whichever comes first. An en- hanced federal deduction was available from 2006 through calendar year 2014 but has now expired. A Virginia state tax credit has been established for conserva- tion easements at 40 of the value of the easement. The amount of the credit that may be used by a taxpayer may not exceed 20000 for tax- able years 2015 and 2016 and 50000 for taxable year 2017 and each taxable year there- after but any unexpended portion may be carried forward for the next 13 taxable years. In addition any unexpended portion may be transferred to another Virginia taxpayer. A recent tax court opinion suggests that the income from the sale of tax credits held for more than one year prior to sale may receive more favor- able long-term capital gains treatment. Tax credits in excess of 1 million or more will be issued only if the conservation value of the donation has been veri- fied by the Director of the De- partment of Conservation and Recreation DCR based on criteria adopted by the Virginia Land Conservation Founda- tion. Pre-filing review of the conservation value is available through DCR. There is a 75 million limit on the amount of tax credits that the Department of Taxation may issue in each calendar year. For an easement conveyed on or after July 1 2015 the application must be filed with the Department of Taxation by December 31st of the year following the calendar year of the conveyance or the credit will be disallowed. Extinguishing some or all of the development rights for a parcel of land through a conservation easement may reduce the value of the land for estate tax purposes thus reducing the estate taxes often substantially. In addition Section 2031c of the Internal Revenue Code provides an estate tax exclusion from the gross estate of up to 40 of the remaining encumbered value of the land but not im- provements on the land pro- tected by a qualified conserva- tion easement. The exclusion is capped at 500000 and is reduced if the conservation easement reduced the lands Ware Hill at Lake Anna State Park. FOR Service To America Service To Louisa Ready To Serve Again Louisa Co. Resident Since 1973 Graduate of Fork Union Military Academy 1987 Graduate of Virginia Tech 1997 Married 23 with 2 sons Owns Oakley Farm in Louisa County Decorated Military Leader Veteran Currently A Major In The National Guard 13 Years In Local Law Enforcement MIKE SILBERMAN LOUISACO. SHERIFF So why wait Contact us today 540.748.8288 LKABookkeeping.com BECAUSE EXPERIENCE MATTERS Re-Elect Sheriff Fortune VOTE NOV. 5 FOR LOUISA CO. SHERIFF 16 Years Serving As Louisa Co. Sheriff