Form 8283
The Internal Revenue Service has published a new Form 8283 and new instructions that require additional information from conservation easement donors.
The new instructions can be seen at http://www.irs.gov/pub/irs-pdf/i8283.pdf. The new form is at http://www.irs.gov/pub/irs-pdf/f8283.pdf. Any donor of a conservation easement in tax year 2006 should use the new form and follow the new instructions.
The new instructions require that conservation easement donors attach to their 8283 a statement that:
- Identifies the conservation purposes furthered by your donation;
- Shows, if before and after valuation is used, the FMV of the underlying property before and after the gift;
- States whether you made the donation in order to get a permit or other approval from a local or other governing authority and whether the donation was required by a contract; and
- If you or a related person has any interest in other property nearby, describes that interest.
The new instructions also state:
"The donee must be a qualified organization as defined in section 170(h)(3) and must have the resources to be able to monitor and enforce the conservation easement.... To enable the organization to do this, you [the donor] must give it [the donee organization] documents, such as maps and photographs, that establish the condition of the property at the time of the gift."
Form 990
The IRS has made new changes to Forms 990 and 990-EZ , the tax returns filed by 501(c)(3) charities. In 2005, the IRS added a question to the form 990, specifically asking if the charity receives donations pursuant to 26 USC 170(h) - in other words, does the charity hold conservation easements or take other qualifying conservation contributions of property. In addition, in January 2006 the IRS made several additional changes aimed at preventing abuse. We will provide more detail later, but most of the new questions are aimed at getting information on outside business relationships that may exist between the charity, its board members and its staff. (Courtesy of Land Trust Alliance)
Download New Form & Instructions.
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