Bargain sales of land on Peaks Island for conservation purposes
As a non-profit organization that raises funds from the island community and through grants for its work, the Peaks Island Land Preserve has a small budget, and consequently is unable to purchase land at market rates. However, if a landowner is willing to enter into a bargain sale, chances increase that PILP will be able to afford the purchase.
If you negotiate a bargain sale with PILP, you will receive less financial return than in a market-rate sale, but that loss can be offset by tax savings. The difference between the land's appraised market value and its sale price is considered a tax-deductible charitable donation when given to PILP, which is a qualified organization under IRS rules.
This deduction, combined with savings on capital gains taxes and broker's commissions, can make the bargain sale an appealing option for many landowners – particularly those
in higher tax brackets or those selling highly appreciated property.
For more information about bargain sales of land for conservation purposes, feel free to contact a board member, or come to one of our monthly board meetings.
Prepared with assistance from the Maine Coast Heritage Trust