Conservation easements have historically been a popular investment vehicle for high earners looking to generate offsets to taxable income. Recent changes to the tax code have curtailed use of conservation easements, but continued to incentivize the preservation of historic buildings.
Steve Austin, co-founder and partner at American Revitalization Company, joins Michael to discuss how his firm is pursuing a unique strategy that incorporates historic preservation tax incentives, ESOPs, and 1042 exchanges.
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Episode Highlights
- History of conservation easement incentives for landowners to preserve space.
- Summary of recent legislative actions that impacted conservation easements.
- Illustration of how historic preservation incentives can be used to generate charitable contributions for investors.
- Discussion of tax efficient exit opportunities created through the sale of operating businesses to an Employee Stock Ownership Plan (ESOP).
- Example of how these strategies can be combined to allow high earners approaching retirement to execute a wealth generating Roth conversion.
Episode Resources
- Historic Preservation Tax Incentives – National Park Service
- ARC Investor Portal
- Congress Limits Conservation Easement Write-Offs
- Episode 5: Roth IRA Conversions Made Simple
Today’s Guest: Steve Austin, ARC
About The Tax Efficient Investor Podcast
On the Tax Efficient Investor podcast, we show you how to protect, grow, and transfer your wealth by implementing tax-advantaged investment strategies. Host Michael Johnston demystifies tax strategies that are favored by the most successful and sophisticated investors, including 1031 exchanges, IRA & 401k plans, HSA accounts, trusts, real estate, and more.
