Conservation Easement Funds - Does anyone invest and receive tax benefits as well?

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ERISA Stone
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Conservation Easement Funds - Does anyone invest and receive tax benefits as well?

Post by ERISA Stone » Wed Dec 06, 2017 1:23 pm

My accountant presented an idea that sounds like it could be very beneficial. We invest in a property that is part of a conservation fund in exchange for a solid tax deduction and a modest future income stream. It sounds like the downside is the IRS audit risk. However, I can purchase insurance to cover my investment.

Any insight is appreciated.
Last edited by ERISA Stone on Wed Dec 06, 2017 10:14 pm, edited 1 time in total.

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BolderBoy
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Re: Conservation Funds - Does anyone invest and receive tax benefits as well?

Post by BolderBoy » Wed Dec 06, 2017 6:17 pm

ERISA Stone wrote:
Wed Dec 06, 2017 1:23 pm
My accountant presented an idea that sounds like it could be very beneficial. We invest in a property that is part of a conservation fund in exchange for a solid tax deduction and a modest future income stream. It sounds like the downside is the IRS audit risk. However, I can purchase insurance to cover my investment.

Any insight is appreciated.
Are "Conservation Funds" composed of conservation easements? I'm trying to learn what you are talking about.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect

livesoft
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Re: Conservation Funds - Does anyone invest and receive tax benefits as well?

Post by livesoft » Wed Dec 06, 2017 6:19 pm

Ask your accountant if they are paid to promote this idea. They may say No, but dive deeper. Do they get a referral? A free bit of the action? Something else?
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ERISA Stone
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Re: Conservation Funds - Does anyone invest and receive tax benefits as well?

Post by ERISA Stone » Wed Dec 06, 2017 7:31 pm

BolderBoy wrote:
Wed Dec 06, 2017 6:17 pm
ERISA Stone wrote:
Wed Dec 06, 2017 1:23 pm
My accountant presented an idea that sounds like it could be very beneficial. We invest in a property that is part of a conservation fund in exchange for a solid tax deduction and a modest future income stream. It sounds like the downside is the IRS audit risk. However, I can purchase insurance to cover my investment.

Any insight is appreciated.
Are "Conservation Funds" composed of conservation easements? I'm trying to learn what you are talking about.
Here is a Forbes article regarding the abuse of the easements. https://www.forbes.com/sites/peterjreil ... 219bdc5f63

ERISA Stone
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Re: Conservation Funds - Does anyone invest and receive tax benefits as well?

Post by ERISA Stone » Wed Dec 06, 2017 7:37 pm

livesoft wrote:
Wed Dec 06, 2017 6:19 pm
Ask your accountant if they are paid to promote this idea. They may say No, but dive deeper. Do they get a referral? A free bit of the action? Something else?
Are you offering this advice in general or are you aware of something specific to conservation easements? There is a fee that I would pay to my accountant to recoup part of their audit of the investment.

livesoft
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Re: Conservation Funds - Does anyone invest and receive tax benefits as well?

Post by livesoft » Wed Dec 06, 2017 7:39 pm

I'm offering this advice in general. OTOH, maybe they just did an audit for another client, so have a report to sell to other clients anyways.
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ERISA Stone
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Re: Conservation Funds - Does anyone invest and receive tax benefits as well?

Post by ERISA Stone » Wed Dec 06, 2017 7:48 pm

livesoft wrote:
Wed Dec 06, 2017 7:39 pm
I'm offering this advice in general. OTOH, maybe they just did an audit for another client, so have a report to sell to other clients anyways.
I'm not quite sure what you are saying. They have had other products in the past in which I've chosen to participate, and they have other clients participate as well. I can tell because they're required to list the clients (with some sort of coding when I receive it) and the amounts each of us invest. It's usually included as part of my tax return.

Lastrun
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Re: Conservation Funds - Does anyone invest and receive tax benefits as well?

Post by Lastrun » Wed Dec 06, 2017 7:54 pm

Please read this and see if it is similar in any way.

https://www.irs.gov/pub/irs-drop/n-17-10.pdf

livesoft
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Re: Conservation Funds - Does anyone invest and receive tax benefits as well?

Post by livesoft » Wed Dec 06, 2017 7:54 pm

I am saying ALWAYS look for the Conflict of Interest even if they say there is none.
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