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Special rule
regarding contributions of capital gain real property for conservation purposes
- In general
- Under a temporary provision that is effective for
contributions made in taxable years beginning after December 31, 2005,3 the
30-percent contribution base limitation on contributions of capital gain
property by individuals does not apply to qualified conservation contributions
(as defined under present law). Instead, individuals may deduct the fair market
value of any qualified conservation contribution to an organization described
in section 170(b)(1)(A) to the extent of the excess of 50 percent of the
contribution base over the amount of all other allowable charitable
contributions. These contributions are not taken into account in determining the
amount of other allowable charitable contributions.
Individuals are allowed to carryover any qualified
conservation contributions that exceed the 50-percent limitation for up to 15
years.
- Farmers and ranchers
- In the case of an individual who is a qualified farmer or
rancher for the taxable year in which the contribution is made, a qualified
conservation contribution is allowable up to 100 percent of the excess of the
taxpayer’s contribution base over the amount of all other allowable charitable
contributions.
A qualified farmer or rancher means a taxpayer whose gross
income from the trade or business of farming (within the meaning of section
2032A(e)(5)) is greater than 50 percent of the taxpayer’s gross income for the
taxable year.
- Termination
- The special rule regarding contributions of capital gain
real property for conservation purposes does not apply to contributions made in
taxable years beginning after December 31, 2007.
- Description of Proposal
- The proposal makes permanent the special rule regarding
contributions of capital gain real property for conservation purposes.
- Effective Date
- The proposal is effective for contributions made in taxable
years beginning after December 31, 2007.
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Internal Revenue Code, Section 170(h)
