TAX NEWS - February 2009

California tax: Conservation Land Sales to the State

Taxpayers who sell land to the state for conservation purposes are eligible to claim a charitable contribution on their tax return for the value of the land in excess of the price paid.

For sales after January 1, 2009, Senate Bill 1285 requires taxpayers claiming the deduction in excess of $5,000 to attach an appraisal for the property to the tax return for the year the deduction is claimed.

This appraisal must be prepared by an appraiser licensed by the Office of Real Estate Appraisers and must comply with the requirements of federal and state tax law for appraisals substantiating the amount of charitable contributions.