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About:
Land Trusts
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Property Evaluation |
Sample
easement terms
Step-by-Step Guide to:
Conservation Easements |
Gifts of Land |
Bargain Sale |
Trade Land
 STEP-BY-STEP
GUIDE TO
BARGAIN SALES OF LAND FOR CONSERVATION
Selling land at less than fair
market value constitutes a bargain sale. If you are
interested in selling land to Kachemak Heritage Land
Trust through a bargain sale, these are the Kachemak
Heritage Land Trust will take:
1.
Discuss Landowner's Objectives: Kachemak
Heritage Land Trust staff will meet with you to discuss
your objectives for the property and to explain the
process of a bargain sale. You should review this sale
with your personal tax and legal advisors.
2.
Evaluate Property: Kachemak Heritage Land
Trust staff will visit your property to evaluate its
ecological, recreational, or scenic values, check for
hazardous materials, and make a preliminary
determination as to whether your property meets Kachemak
Heritage Land Trust's criteria for acquisition for
conservation purposes.
3.
Prepare Letter of Intent: Kachemak
Heritage Land Trust will prepare a letter of intent, to
be signed by all parties, setting forth the general
terms of the donation.
4.
Request Kachemak Heritage Land Trust Board
Approval: Kachemak Heritage Land Trust staff will
present the property evaluation and the letter of intent
to the Kachemak Heritage Land Trust Board of Directors
at the next regularly scheduled board meeting for formal
board approval. Board approval is required to proceed.
5.
Review Title: Kachemak Heritage Land Trust
requires proof of clear title.
6.
Prepare Purchase Agreement: Kachemak
Heritage Land Trust will prepare a purchase agreement,
to be signed by all parties, setting forth the terms of
the bargain sale.
7.
Prepare Conveyance Document: Kachemak
Heritage Land Trust staff and our attorney will prepare
the deed.
8.
Obtain an Appraisal: If you or your
advisor determines that the bargain sale will qualify as
a charitable donation, you must select and hire a
qualified appraiser to establish the market value of the
property at the time of the sale.
9.
Sign Deed: After a final review of the
documents, you will sign the deed. Kachemak Heritage
Land Trust will record the deed at the appropriate
recorder's office.
10.
Submit Form 8283 to the IRS: You must
attach IRS Form 8283 and required documents (for "Noncash
Charitable Contributions") to the income tax return that
you submit for the year in which you sold the land to
Kachemak Heritage Land Trust if you seek IRS recognition
of your charitable contribution.
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