Bargain Sales As funds for acquisition require fundraising or funding by grants, SWT will normally request that landowners sell their land to SWT at a bargain sale. Sale of land at less than market rate permits SWT to purchase the land at an affordable price while permitting the landowner to deduct the gifted portion as a charitable tax deduction.
The difference between appraised market value and the sales price is a tax-deductible charitable donation to the extent permitted by law. Such a sale is particularly beneficial when selling highly appreciated property.
How We Pay Purchase Land
Option SWT may request that a landowner agree to an option to purchase by a certain date and for a certain price. Very few land trusts have sufficient revenue available for immediate acquisition and often require time to raise funds from private and/or public sources.
SWT may decide that it does not require all of your land and request a subdivision of your land. A subdivision would also permit SWT to spread out the acquisition of parcels over time. This may also be useful if a landowner would prefer to spread out income and taxable gains.