Tax Break With a View, Landowners Rush to Take Advantage of New Law That Boosts

Tax Break With a View

Article information: "Tax Break With a View, Landowners Rush to Take Advantage of New Law That Boosts Deductions for Blocking Development; a Crackdown on Abuse; By RACHEL EMMA SILVERMAN, Wall Street Journal, February 7, 2007; Page D1"

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Muscoe R.H. Garnett Jr.'s farm in Loretto, Va., hasn't changed much since the family acquired it in the 1600s. Now, the retired insurance executive has made sure it will stay that way.

Encouraged by recent tax legislation, Mr. Garnett has placed a "conservation easement" on much of his property, located about 80 miles from Washington, D.C. The move permanently shields the rolling pastures, timber forests and croplands from being turned into a housing subdivision or business park. Under the easement, which is a binding agreement typically made with a land trust, the Garnett family still owns the land and can continue to use it for farming and timber but most of it can never be developed...