client wants to develop 16 lot subdivision but town has mandated that he can develop only 14 lots and have rest be open space given to land trust. Tax wise how do we handle the two lots being designate as open space
given to land trust.
What does "given to land trust" mean? Is the land being "given" to the town? Or does the taxpayer still own it, but is just not allowed to build on it?
If the taxpayer still owns it, he can deduct the property taxes he pays on the land. Otherwise, it is just an asset that is owned that may have a gain or loss when sold. Nothing else you could do with it on the tax return.