I have a client who donated a conservation easement, eligible for 100% deduction, but ProSeries automatically limits it. Any ideas, other than just override the calculation? How can I see how the program calculates this?
there are limits
A person "donating" a qualified conservation interest may deduct the appraised value of the easement from their adjusted gross income, provided that the deduction does not exceed 30% of their adjusted gross income in the year of the gift. Any excess balance of the deduction may be carried over for up to five succeeding years, subject to the same annual 30% limitation. (IRC Section 170).
This is a QCC of a farmer/rancher, and is eligible for 100% according to Pub 526. Am I missing something? Also, any idea how to see how ProSeries is doing the calculation? Thanks
It looks like it is applying the 50% of AGI limit to both the cash and the QCC. Cash contrib are less than 50% of AGI, so they should be allowed in total. Plus the QCC is 100% allowable so it should be allowed on the program. ...my brain hurts...
here you go--most permutations-tax laws etc---over 50% of income must be from farming to take 100%
http://www.farmprogress.com/story.aspx/take-look-conservation-easement-9-55381
ok how did that happen
double click charity name will take you to 8283 worksheet--scroll down you will find other than 50% charity--check that box--should help
no direct instructions--the 8283 does have a choice for conservation n i believe
let us know if that works
Yes, did the choice "n" for C.E. Also went through the 8283 worksheet. Checked the box for "Other than 50%" charity, it lowered the calculated amount, used the 30%. Unchecked it, it went back up. It appears that the program does not take into consideration the 100% for qualified farm C.E. contributions. I went through this in 2008, the advice from the ProSeries people at that time was to override with the correct. This is such a rare thing, I am guessing that they won't do anything about it. This is an amended 2010 return, and I gotta have it out tomorrow, so I'll just override with the correct amount and move on. I'll be interested in any follow up from anyone, including the ProSeries people. Thanks for your input.
doesn't this also require an 8453 ???--program isn't good at this either--best you'll get is a cautionary statement in the diagnostics
you might make a request to proseries at the least it be included in the unsupported calculations
what you are doing is correct and probably the only way to handle it at this point
Thx for the heads-up on the 8453. But, since this is a 2010 amended return, and I have about a 2" stack of apprailsals, documents, etc. to send with it for both federal and state, won't be efiling. The 100% dedcution for farmers is (has been) an in-and -out thing in the law. The 2008 Farm Bill extended the 50% and 100% limits, then the Dec 17, 2010 Act again renewed those limits, along with a bunch of other things for 2010, 2011, and 2012 (retroactive to 1/1/10 - remember that fiasco???) I am expecting an audit from both fed and state because part of the easement was done through an estate. Hope they wait till summer... Thanks again!
