Land Trust

[Randall]

Is a land trust any different than another trust, just a trust holding land?  Client is holding personal residence in a 'land trust'.  He is asking questions about gain on sale when and if it happens.  I'm thinking that if it's a revocable (grantor) trust, then it is treated as if he owns it and will get the gain exlusion.

[Lee B]

"Land trusts are not “trusts” in the legal sense. Some, in fact, refer to themselves by other names such as conservancies, foundations, or associations. Land trusts accept donations of properties, buy land, or help landowners establish legal restrictions that limit harmful use and development."

You may need to ask more questions?

[Randall]

43 minutes ago, Lee B said:

"Land trusts are not “trusts” in the legal sense. Some, in fact, refer to themselves by other names such as conservancies, foundations, or associations. Land trusts accept donations of properties, buy land, or help landowners establish legal restrictions that limit harmful use and development."

You may need to ask more questions?

Interesting.  I guess my client doesn't really have a land trust.  He's putting his personal residence in this.  I'll have to get his document before I can answer his tax question.

[Randall]

I found my own answer.  IRC 671 and Reg §1.121-1(c)(3).

Incidentally, I asked an attorney in my building if ‘Land Trust’ was a legal term or just a common phrase. He said it was just a common phrase.