Conservation Partnership to save taxes

[johnsantaclara1]

Hi there, I recently heard that investing in Conservation Partnership (Treasury Regulation 1.170A-14,170(h) of the Internal Revenue Code) can help save taxes via donation of conservation easement. They say that the easement is deductible from donor's adjusted gross income from all sources. But the doc also says that the risk is adverse IRS audit though conservation elements are not currently known to be "red flags" and only a small portion is pulled for audit.

Please advise if this is safe and if I should be cautious about anything. (An agent offered to help me with this paper work for a fee of $1400). Thank you.

[Anonymous_]

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@johnsantaclara1 wrote:

Please advise if this is safe and if I should be cautious about anything. (An agent offered to help me with this paper work for a fee of $1400). Thank you.

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Just one opinion, but I would not be overly concerned with an audit provided you have documentation and the donation is permitted (and the Regs indicate it is allowed).

However, you might want to check on the price you were quoted because $1400 sounds a bit on the high side for the amount of paperwork involved, at least with respect to the actual grant of easement which is not overly complex.

[johnsantaclara1]

Thank you so much for your response. That info was very helpful.

[johnsantaclara1]

Thank you. I understand that $1400 seems high. I would appreciate your advise on how much is usually charged for such paperwork. Secondly, if you know of any one who can help me with this paper work, that would be super helpful. Thank you!

[Anonymous_]

You might try a local title company. I know some of them will draft deeds for $100-200. 

Also, check with local attorneys who have small offices (or are sole practitioners). 

[johnsantaclara1]

Thank you!

[johnsantaclara1]

Thanks so much! As I was reading more about Conservation partnerships, I found some worrisome info in links such as below.. Do you think those can be ignored and it is still safe? Thanks again.

https://www.cnbc.com/2018/01/12/this-tax-move-trump-used-could-get-wealthy-investors-in-hot-water-wi...

https://www.cpapracticeadvisor.com/tax-compliance/news/21111982/eight-things-to-do-when-the-irs-want...