Posted by LE on November 05, 1998 at 09:11:23:
Karp wrote: “see if he can set up a charitable remainder trust so that he can take a ton of deductions and upon his death the portion that you bought remains yours (which you should be able to buy for well under 100K) and he and his heirs get a heck of a deduction come estate tax time. Look into that and let me know.”
Sorry, I don’t know what a char. remainder trust is, but I’ll see what I can find out today. I know he’s already taken huge deductions based on the “best use” of the land with many more lots (ie he’s deducting $200,000 a year for a couple years as a charitable donation). This is based on the value difference between what he could have used the land for (many small lots) and how he actually used it (four big lots), donating the difference in value to the land conservancy.
#2) “if this place is remote…” It’s not. It’s at the edge of the rapidly expanding suburban Detroit/Ann Arbor area. The school district for the property is part of the community I now live in (70,000 inhabitants) So it’s doubtful any type of rural housing program would apply.
#3) Not sure I follow. The land can’t be subdivided in anyway. You buy the whole 10 acres or nothing, and within that 10 acres you get to select any 2 for your building site. The land conservancy is a Michigan non-profit company that now holds a legal interest in the land, even though they have absolutely no ownership. They have the right to enforce the terms of the conservation easement (like no building, no subdividing, no hunting, and other environmental stuff). So I’m not sure what you’re suggesting by buying the conservation part of the land.
BTW, this is exactly the kind of info I was hoping for, so I hope you don’t find my reply questions too basic. I really do want this land. Just to sweeten the idea, one of the other 4 lots just came back on the market (new owner ran out of money to build his house) and the new owner’s asking price is $279,900 (not the $200,000 he paid last year or the $200,000 price I have on the adjacent lot).
Thanks for all your suggestions.