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Land usage as a possible gift in kind?

  • 1.  Land usage as a possible gift in kind?

    Posted 25 days ago
    Hi,
    I have an unusual situation and am wondering if there's any way I can count some of this as a gift in kind.
    The college I work for grows hay and grains for our cattle. We have a neighbor that is letting us use their land for hay and to rotate our cattle. They ask in return that we maintain it so that it's clean. We get about 50-60 bales of hay a year out of this land and fair market for this hay is about $100 per bale. Is there any tax benefit for this? Any loopholes, perhaps with grazing rotation and the cattle getting something from the land?

    Thank you,
    Kelly



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    Kelly Hallock
    Director of Advancement Services
    Warren Wilson College
    khallock@warren-wilson.edu
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  • 2.  RE: Land usage as a possible gift in kind?

    Posted 25 days ago
    Your donor will need to figure out any "tax benefit."  However, there's no charitable gift here.  The use of the land falls under the IRS definition of "partial interest" as described in IRS Publication 526.  Therefore, it is not recognized as a deductible gift.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987