May 2001

If you own a farm, farm land or undeveloped real estate and have an interest in conserving it as agricultural or underdeveloped land, you may benefit from attractive provisions under the Internal Revenue Code which allow you to gift away the "development rights." The value of the development rights would produce an income tax deduction on your Federal income tax returns. The gifted development rights also reduce the valuation of the land for estate tax purposes. You continue to own and have the use of your land after the gift of the agricultural/conservation easement. If this concept is of interest to you, please contact one of the members of the Rhoads & Sinon Trusts and Estate Group.