 STEP-BY-STEP GUIDE TO TRADE LAND DONATIONS
Kachemak Heritage Land Trust accepts "fee title" gifts of land, that is, gifts of all the rights of a parcel of land including ownership. Property donated to the Land Trust in fee need not have conservation value to create a tax deduction for the donor. If the land has conservation value, KHLT will either hold it, or put appropriate restrictions on it and sell it. If the property does not have conservation value, the Land Trust will sell it and put the proceeds toward further conservation work.
If you are interested in donating land for sale or exchange (trade land) to KHLT, these steps will be followed:
1. Evaluate Property: KHLT representatives will visit your property to evalaluate its potential fair sale and visually check for hazardous materials in order to make a preliminary determination as to whether your property meets KHLT's criteria for accepting trade lands.
2. Discuss Owner's Objectives: A KHLT representative will meet with you at the KHLT office or your home to discuss your objectives for the property and for the use of the revenue to be received by KHLT from the sale. You should then review this information with your personal tax and legal advisors.
3. Request KHLT Board approval: If you decide to go forward with the trade land donation, a KHLT representative will present a review of the property and its value to the KHLT Board of Directors at the next regularly scheduled board meeting for formal board approval.
4. Prepare letter of Intent: KHLT will prepare a letter of intent, to be signed by all parties, setting forth the terms of the donation.
5. Check title: KHLT requires proof of clear title. All taxes are expected to be current. Usually, the land donor pays for title insurance.
6. Prepare conveyance documents: KHLT representatives and legal counsel prepare the grant deed and other appropriate documents.
7. Obtain an appraisal: If you or your advisor determines that the land donation will qualify as a charitable gift, you must select and hire an appraiser to analyze the market value of the property at the time of the gift. KHLT can provide you with a list of appraisers.
8. Sign deed: After a final review of the documents, you and KHLT's president and secretary will sign the deed. KHLT will then record the deed in the appropriate recorder's office.
9. Submit Form 8283 to the IRS: You must attach IRS 8283 (for "Noncash Charitable Contributions") to the income tax return that you submit for the year in which you sold the land to KHLT.
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