Level 3

Conservation Easements

Forum|Forum|2 years ago
October 22, 2023
1 reply
6 views

My research indicates that conservation easements should be allowed as a charity deduction up to 50% of AGI. When I enter it in the 2022 ProSeries on the Sch A as a Noncash Contribution and code "N" (real property, conservation), proseries is limiting the deduction to 30% AGI (not 50%). I get the same exact result (30% limitation) when I change the code to "O" (real property, other than conservation).

Am I wrong about the 50% AGI deduction for conservation easements or is there something else I need to be entering in proseries to have it use the 50% rather than 30% limitation.

ProSeries Tax

BobKamman

Level 15

Have you tried starting the entry on Form 8283?

M

MainecatAuthor

Level 3

I enter on a Sch A worksheet and it flows over to the Form 8283. I am unable to enter direct on Form 8283 and in fact the program states "Do not enter info directly on Form 8283". The Form 8283 does have a X beside the box for Qualified Conservation Contribution so at first glance I think I have entered it in correctly but am confused why the program is limiting donation to 30% of AGI and not 50%.

BobKamman

Level 15

I get the same result -- 30%, not 50% -- even when I check the "Yes" box for Line 14, Part 7 of the 8283 worksheet (which asks if the property is used for the organization's exempt purpose, and not sold). And what I find with some research is that 50% is correct. It was changed from 30%, years ago.

Did your client actually own this property, or did he buy into a syndicate, perhaps involving land in Georgia or elsewhere in the South? Because IRS has an army of revenue agents and lawyers going after those schemes. If that's the case, I would consider advising the client that 0% is a better number to use. Is this a 2022 return? Has it now been filed? I agree that Intuit needs to look at the issue.

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