Preserving Historically Important Land
From: Conservation Easements: The Federal Tax Rules and Special Considerations Applicable to Syndicated Transactions
By: Bryan Mick, JD, MBA and Bradford Updike, JD, LLM
Mick Law P.C.
The fourth conservation purpose involves conservation easements that are intended to preserve a “historically important land area” or a “certified historic structure.”1 While the preservation restrictions to preserve a building or land area may allow future development on the protected site, “a deduction will be allowed…only if the terms of the restrictions require that such development conform with appropriate local, state, or federal standards for construction or rehabilitation within the [historic] district.”2
The term historically important land area includes:
- An independently significant land area including any related historic resources (for example, an archaeological site or a Civil War battlefield with related monuments, bridges, cannons, or houses) that meets the National Register Criteria for Evaluation in 36 CFR 60.4 (Pub. L 89-665, 80 Stat. 915);
- Any land area within a registered historic district, including any buildings on the land area that can reasonably be considered as contributing to the significance of the district; or
- Any land area (including related historic resources0 adjacent to a property listed individually in the National Register of Historic Places (but not within a registered historic district) in a case where the physical or environmental features of the land area contribute to the historic or cultural integrity of the property.3
A certified historic structure includes “any building, structure, or land area which is: (A) listed in the National Register, or (B) located in a registered historic district (as defined in § 48 (g)(3)(B)) and is certified by the Secretary of the Interioir…as being of historic significance to the district.”4 A structure, for purposes of the regulation, “means any structure whether or not it is depreciable.”5 As such, easements on private residences may qualify if they satisfy all other requirements of the regulation. In addition, a structure would be considered to be a certified historic structure if it were certified either at the time the transfer was made or at the due date (including extensions) for filing the donor’s return for the taxable year in which the contribution was made. 6
Bryan S. Mick is the President of Mick Law P.C. in Omaha, Nebraska, and a provider of independent due diligence legal services for various broker-dealers and registered investment advisors throughout the country.
Brad Updike joined Mick Law in August 15, 2006, and his areas of practice include securities law, oil and gas, private equity, conservation real estate, DPP due diligence, taxation analysis relating to securitized financing, and securities advertising practices. On a local level, Mr. Updike has also served the legal needs of Omaha-based clients on matters relating to estate planning, private placements, trademark law, and 501(c)(3) non-profit taxation matters.
Bryan Mick, Bradford Updike, Mick Law P.C., SANDLAPPER Securities, LLC, Sandlapper Wealth Management, LLC, and TRIPS are unaffiliated.
1 Treas. REg. § 1.170A-14(d)(5)(i).
3 Treas. REg. § 1.170A-14(d)(5)(ii).
4 Treas. REg. § 1.170A-14(d)(5)(iii).
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