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Conservation Tax Credit Questions
Old 09-24-2014, 05:58 AM   #1
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Conservation Tax Credit Questions

Good Morning,

I am having a meeting today with my accountant and financial adviser. The adviser is asking me to purchase Conservation Tax Credits as a way to lesson my tax bill. Personal situation as follows: Not many deductions at all, income to high for IRA / Roth / food stamps... etc.

Any advice would be great. It sounds like if we buy 50K we save 100k in taxes, almost sounds too good to be true. We are getting hammered on taxes every year 150K plus.

Thanks in advance.
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Old 09-24-2014, 06:22 AM   #2
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Sounds like you would be buying credits that can't be used by another taxpayer at 50 cents on the dollar. I would be cautious... if something sounds too good to be true...

You might ask how many similar deals your accountant/FA has done and ask to talk with the clients that did them.

How long have you had this accountant/FA?

P.S. I'm not from Georgia, so no first hand experience with these.
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Old 09-24-2014, 06:35 AM   #3
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I have had clients purchase the credits (at 70 cents on the dollar) and they are a good deal.


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Old 09-24-2014, 07:22 AM   #4
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Make sure you have recourse if their appraisal is audited and adjusted. I've seen a tax credit for a land conservancy based on an old, inflated appraisal and the state rejected it. You want to make sure that if this happens, the conservancy has to make up the difference, not you.
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Old 09-24-2014, 07:31 AM   #5
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So am I correct that this technique is only applicable on State taxes - not Federal?

-gauss
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Old 09-24-2014, 03:22 PM   #6
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There are several states that offer this deal, but I am not aware of any similar Fed credit.
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Old 09-24-2014, 06:12 PM   #7
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Quote:
Originally Posted by pletal View Post
Good Morning,

I am having a meeting today with my accountant and financial adviser. The adviser is asking me to purchase Conservation Tax Credits as a way to lesson my tax bill. Personal situation as follows: Not many deductions at all, income to high for IRA / Roth / food stamps... etc.

Any advice would be great. It sounds like if we buy 50K we save 100k in taxes, almost sounds too good to be true. We are getting hammered on taxes every year 150K plus.

Thanks in advance.
We've done it in VA. But the price was about 85 to 88 cents on the dollar. Just have to make sure they're reputable.
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