If you are a property investor, or otherwise own large areas of land within your state or territory, then you may always be on the lookout for additional purchase opportunities or ways to strategically manage the land that you own. Some of this land may be in an area that has been otherwise earmarked for conservation by the local authority or may be of other interest from a public point of view. How should you consider ownership of this type of land from a completely different perspective?
Focus on Conservation
Local and federal governments will, from time to time, specify that a particular area is restricted from a conservation point of view. In other words, they will want to ensure that this land is maintained in its current state, and often because it is particularly scenic or is home to some endangered flora or fauna. When they do so, they will introduce a conservation easement to ensure that the property in question cannot be developed. Instead, the local government agency or a separate land trust is given the responsibility of protecting that area.
This is not to say that the land must always be publicly owned, and this may represent an opportunity in your case. There are many examples around the country where private owners have taken ownership of such land or donated it to the authority instead.
If you have land that is of interest in this way, it may be beneficial for you to donate it to the government, as you may be eligible to receive a significant tax incentive. In some cases, you can claim a tax allowance of up to 50% of your gross income for a number of years, or until the full value of the donation has been met. Furthermore, you may decide that you want to protect your legacy for future generations and this may lead you to donate your land instead.
Worth Thinking About
It's certainly worth considering this type of approach, especially if you want to diversify your property portfolio, are very critical about your tax affairs or may want to be seen as a "good citizen." After all, it's not always necessary to buy land with a view to redevelopment, or to ensure that you get maximum yield for your investment.
Getting More Detail
If you want to do something different, talk with your property lawyer for further information.
Hello. I'm Mark and I am the manager of a successful modelling agency. It is my job to ensure that our models are well cared for and generate positive publicity for the agency. Sometimes that can be quite challenging and I spend a lot of time liaising with our legal team. From clients who refuse to honour contracts to models who are facing charges themselves, I am constantly dealing with legal issues. Over the years, I have become quite familiar with a range of laws and legal processes. My friends and family consider me to be a veritable fount of information when they have legal questions. I have decided to compose this blog in order to address the issues I most commonly deal with. Please browse at your leisure.