Metcalf Land Company, Inc.

Planned Conservation Easement

PROPERTY
Our example tract is a typical 350-acre, predominately pine plantation with hardwoods, along a stream and creek bottoms.

RESERVED RIGHTS
1. Owner is opting to reserve three home sites.
2. The plan allows for maintaining a sustainable forest, while harvesting pine timber only under a managed forestry plan.

VALUE OF LAND
For this particular example, the 350-acre tract is appraised for $2,500 per acre or $875,000.

VALUE OF THE EASEMENT
Conservation easement values typically range from 30% to 70%, depending upon the reserved rights. In this example, we will use a reduction of 50%, with the resulting easement value equaling $437,000.

OWNER’S INCOME
This owner’s adjusted gross income is $250,000.

FEDERAL TAX INCENTIVE
Conservation easement incentives are 50% of adjusted gross income (AGI) in any one tax year. In this case, the owner could take a deduction of $125,000 for three (3) years, and the remaining $62,000 would be taken the fourth year. Total deductions would equal $437,000.

SOUTH CAROLINA STATE TAX INCENTIVE
The South Carolina state tax is $250 per acre, up to a maximum of $52,500. Our example owner would qualify for the maximum allowance. Depending upon the state tax liability, the owner has the option of spreading this credit over several years or using it all in one year. The credit could also be sold on the open market for an estimated 75 cents on the dollar, if no state tax liability exists.

ESTIMATED COSTS*
Appraisal.................................................................$2500
Survey.....................................................................$3500
Title investigation.......................................................$250
Stewardship Fee to Conservancy for managing implementation of easement....$7,000

*These are approximations. An appraiser and a surveyor would need to be contacted about actual costs.
**This is not meant to serve as an analysis of any specific property.