The Central Valley Farmland Trust (CVFT) is recognized as a 501 (c) (3) charitable organization by the Internal Revenue Service. This allows landowners under certain situations who place agricultural conservation easements (ACEs) on their property to generate substantive tax benefits. Landowners who elect to sell an ACE to CVFT can utilize the sales proceeds to accomplish several financial and economic goals.
Landowners may sell, donate, or sell an ACE at a reduced price (e.g., Bargain Sale). By donating the ACE the owner may generate significant income, estate and property tax benefits. It is important to note that each situation is unique and requires the guidance of a qualified tax adviser.
If a landowner sells an ACE the proceeds may be used to retire debt, make improvements to their property, or purchase additional land. Many landowners have taken advantage of the taxed deferred exchange (e.g., IRS code 1031) to acquire additional land. The proceeds may also be used among the siblings to balance the family inheritance.
The decision of a landowner to donate or sell an ACE is completely voluntary. Such a decision is exclusively the personal property right of the landowner. A full and complete understanding of the implications is critical in deciding whether or not to place an ACE on one’s property.
Please contact the CVFT to discuss how an ACE may benefit you and ultimately protect the agricultural productivity of your land for future generations.
