For many land trusts, budget season is here for 2014, so you may want to start planning for next year’s Terrafirma premium payment. Next year’s payment will be due no later than February 3, 2014. Since your registration fee is already paid, your next payment will only be for the annual premium. To refresh your memory, the base premium before any discounts is $60 per property. Accredited land trusts automatically receive an $11 discount. Discounts are also available for land trusts that meet certain good practices. Check the Terms and Conditions for more details or call or write to me.
We’re here to help! If you have any questions about premiums or anything else, please let us know. You can reply to this email, email us directly or call 202-800-2219 for Lorri or 802-262-6051 for Leslie (please note, Leslie is on vacation and will be back in the office on August 5).
Form 990 season is here, and it’s likely that someone at your land trust may be wondering where to enter the Terrafirma payment and other insurance premium. We’re here to help! Here are a few tips:
- Please consult your land trust accountant or tax professional. We can’t give you tax or other advice.
- A general reading of the instructions shows that insurance premiums are entered on the main form Part IX, line 23.
- And lastly, for Schedule D, a general observation of those instructions suggests that the IRS is looking only for specific enforcement actions after you discover a violation by a property owner. Following that definition would mean not listing any insurance premium payments on Schedule D except possibly in a year of an actual claim meeting the IRS enforcement definition.
- Here is the IRS definition of enforcement for purposes of Schedule D: “Enforcement of an easement means action taken by the organization after it discovers a violation to compel a property owner to adhere to the terms of the conservation easement.”
Remember: consult your land trust’s financial, tax or legal advisor on this new issue.
Let us know how we can help you.