Conservation Easements

[Mainecat]

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.

[BobKamman]

Have you tried starting the entry on Form 8283?

[Mainecat]

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]

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.  

[Mainecat]

He is actually looking to do it in 2023, I am trying to advise on the potential tax benefits by running a few scenarios in Pro Series.  This will not involve any syndicates, so that is not an issue. I just want to be sure I am advising correctly at 50% AGI (which all my research indicates), but am doubting myself as proseries is only calculating at 30%  I am unnsure if I am missing some step, or is proseries miscalculating or is my research wrong?

[BobKamman]

Don't count on 2023 law until at least March of 2024.  By then, Congress might be back in session and trying to plug loopholes.  You can read Code Section 170 as easily as I can.  Which means, it's not that easy to read, but I think it says 50%.  Might be better for your client, though, if it were 30% with a carryover.