Blue Line Conservation Incentives

BlueLine is a natural extension of the solid experience and reputation of Norman Realty, a real estate services company that has been dedicated to realizing the best potential of Northern Virginia and Piedmont properties since 1955.

An easement donation is a complex transaction and the ultimate return you receive from the sale of your Virginia income tax credits can depend upon decisions you make early in the easement donation process.

	BlueLine visits our client's property to evaluate and catalogue the property's land, buildings and unique features.

	We identify our client's conservation and financial goals, and work towards a balanced assessment of options for the short and long term.

	BlueLine streamlines the application paperwork and process to structure proper easements that generate the best possible financial return while safeguarding the unique attributes of a property.

	Working with the commonwealth's and nation's most revered land trusts, we guide our clients in choosing the land trust best suited to their individual needs.

	Taking an integrated and team approach, we utilize our connections with the region's most respected appraisal, legal and accounting firms to offer a thorough and professional experience that delivers a high level of easement integrity and client satisfaction.

	BlueLine's integrated services and quality controls assist the landowner in establishing the validity and market value of their credits.

Donating a conservation easement can create multiple tax benefits. The value of these benefits will vary depending upon each taxpayer's situation. Some of the benefits are:

	Federal income tax deduction. The deduction is the difference between the value of the property before the easement and the value after the easement. The donation of the easement creates a charitable deduction subject to income and charitable limitations.

	Virginia income tax credit. Virginia will give the easement donor Virginia income tax credits equal to 40% of the value of the donated easement. There are limits on how much of the credits can be used and carried forward.

	Estate tax reduction. The reduced value of the land reduces the size of the estate subject to tax.

Additionally, the donor may sell the Virginia income tax credits for cash. The sale of these credits create their own unique tax issues for the seller.

John and Jane Landowner own land worth $3,000,000. They put conservation easement on the property which reduces the value to $2,200,000. They make a charitable donation of this easement. They have a non-cash charitable donation of $800,000. They are eligible for $320,000 Virginia income tax credits.