[WSBARP] Sale of an Easement - Capital Gains?

[Craig Gourley]

We have facilitated several 1031 exchanges of conservation easements.  They are real property interests that are exchangeable.   I believe they are subject to capital gains as well but would defer to my CPA or LLM Listmates to confirm that one.

Gourley Law Group
Snohomish Escrow
The Exchange Connection

1002 10th Street / PO Box 1091
Snohomish, WA 98291

360.568.5065
360.568.8092  fax
Craig at glgmail.com<mailto:Craig at glgmail.com>

From: wsbarp-bounces at lists.wsbarppt.com [mailto:wsbarp-bounces at lists.wsbarppt.com] On Behalf Of David Faber
Sent: Wednesday, May 11, 2016 4:10 PM
To: wsbarp <wsbarp at lists.wsbarppt.com>
Subject: [WSBARP] Sale of an Easement - Capital Gains?

I have a client who I've been working with for a couple years and they just brought to me a novel issue: they're selling a "conservation easement" to a local land trust for six figures. Needless to say, they wish to pay either no taxes or long-term capital gains on the sale of the easement rather than straight income taxes.  The former (no taxes) is likely impossible, but because they have owned the property for more than a year and given that the sale of the easement is, to my mind, a sale of a real property interest, would it not be accurate to note that they could take advantage of the tax savings offered by long-term capital gains taxes?

Best,
David J. Faber
Faber Feinson PLLC
210 Polk Street, Suite 1
Port Townsend, WA 98368
(360) 379-4110

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