WealthPRIME Technology, Inc. is now open to accredited investors interested in tax mitigation strategies through the use of conservation relief

LOS ALTOS, California., October 21, 2022 /PRNewswire/ — To 5th of August, the U.S. Court of Appeals for the District of Columbia Circuit rejected the IRS’s position that Cross Refined Coal LLC was not a bona fide partnership for tax purposes. The decision was important because it validated a partnership whose business was not profitable, but for the possibility of tax credits. The courts have long held that Congress’ intent to incentivize certain investments that meet recognized national goals through the application of tax credits and deductions from charitable donations takes precedence over IRS interpretations of economic substance.

This ruling opens the window for new tax-advantaged investments such as B. Conservation Easements. Conservation relief is becoming increasingly popular as a prepared investment for environmentally conscious, high net worth investors who take advantage of this Congressional sponsored program to offset up to 50% of their ordinary income and capital gains. in the January 2021, the Biden administration issued Executive Order No. 14008 with a goal to protect 30% of US land and water to preserve biodiversity and curb greenhouse gas emissions. The management report America the Beautifulproblematic May 2021identified federally deductible conservation easements donated by the private sector as tools likely to play an important role in the administration’s conservation strategy.

This denial by the District of Columbia Circuit Court is consistent with several new interpretations by the Sixth and Eleventh District Courts and the Tax Court that have preserved this valued investment and curbed aggressive IRS tendencies to counter Congress’ intent.

Upcoming changes in tax law:

Historically, these investments were “listed transactions” that required filing with the IRS. Investors in high tax brackets who applied for the maximum tax deduction (usually 4x or 5x) had to meet the listed requirements.

There are currently proposals in Congress that would eliminate IRS filing for “listed transactions” but could reduce future tax savings. While we cannot predict which bills will go into effect, current law provides investors with a maximum deduction window.

While the Charitable Conservation Easement Program Integrity Act (Wyden/Stabenow/Grassley/Daines) was a topic of discussion among Democrats as they negotiated the Reconciliation Act, the legislation that passed – the Inflation Reduction Act (formerly Build Back Better) – was does not include language-restricting deductions for conservation easement donations. In addition, the removal of previous retrospective language in proposed legislation means that current investors will enjoy grandfather status if legislation is passed in the future.

WealthPRIME based in San Carlos, Californiais a leading provider of ways to facilitate conservation.

Contact:

Dan Harding
[email protected]
(415) 205-6500

WealthPRIME Technology, Inc.

SOURCE WealthPRIME Technology, Inc.

source

Leave a Reply

Your email address will not be published. Required fields are marked *