Instructions For Form Lpc-2, Notification Of Transfer Of Land Preservation Credit

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Instructions for Form LPC-2, Notification of Transfer of Land Preservation Credit
The Department makes no express or implied warranties
Purpose of Form LPC-2
that any tax benefits will be available to the donor, or
to anyone to whom a Land Preservation Tax Credit
Individual and corporate taxpayers may claim a
is transferred or re-transferred. The Department will
credit against their tax liability for the donation of
notify you further only if any portion of your credit is
land or interest in land to an eligible public or private
disallowed or otherwise adjusted by the Department.
conservation agency.
Such notification may be issued either before or after
Credits derived from qualified donations made on or
you file an income tax return claiming the credit, subject
after January 1, 2002, may be transferred to another
to the statute of limitations.
taxpayer. Form LPC-2 is used to notify the Virginia
In addition, the sale or transfer of tax credits may have
Department of Taxation (the Department) of an existing
income tax consequences for the credit holder and the
Land Preservation Credit that has been sold or otherwise
transferee. You are encouraged to consult your attorney,
transferred to another taxpayer. It is also used when the
tax professional, or the Internal Revenue Service for
transferee is a pass-through entity (partnership, limited
advice.
liability company, S corporation, estate or trust) to
notify the Department of the allocation of credits among
Filing Procedure
the partners, members, shareholders or beneficiaries of
• Multiple transfers for the same donation and
the pass-through entity. The transfer must be completed
credit holder can be filed on Schedule A (attach
before the end of a taxable year in order for the recipient
additional pages if needed).
to use the credit for that taxable year.
• For married taxpayers, where each spouse is
purchasing a credit, each spouse must be listed
For credits derived from donations made on or after
separately in Section III of Schedule A.
January 1, 2007, transfers for consideration and
• If any of the transferees are pass-through entities,
allocations among pass-through entities owners are
a separate Schedule A must be completed for each
subject to a fee. This fee is computed on Form LPC-2
entity.
and must be paid with the form.
• If you are transferring to more than 15 transferees,
When to Submit Form LPC-2
please contact the Tax Credit Unit for the required
spreadsheet format. (804) 786-2992.
For original donations made on or after January 1, 2008,
• Payments should be paid with a certified check
you cannot transfer credit(s) until the Department has
or money order. Include the Land Preservation
issued the credit for your donation. The Department
Credit transaction number on your check/money
is unable to guarantee that any LPC-1 application
order. Payments returned by the bank will be
received in December will be processed in time to make
subject to a returned payment fee in addition to
a transfer in that year.
any other penalties that may be incurred.
To avoid delays in the processing of your annual return,
Mail your completed Form LPC-2 and payment, if
Form LPC-2 should be submitted to the Department
applicable, to:
within 90 days of the credit transfer, but at least 90 days
Virginia Department of Taxation
before you file your annual return and claim the credit.
Tax Credit Unit
Upon receipt of your Form LPC-2, the Department will
P.O. Box 715
record the transaction and provide the transferee with
Richmond, VA 23218-0715
a letter acknowledging the credit. The transferor will
For assistance, call the Tax Credit Unit at (804) 786-
receive a receipt for fees paid.
2992.
Please note that this acknowledgment does not
How to Complete Form LPC-2
constitute the Department’s approval of the amount of
the Land Preservation Tax Credit that may be claimed.
A separate Form LPC-2 should be filed for each credit
The amount of the tax credit identified above is subject
holder per donation.
to subsequent review and audit by the Department and
Lines not mentioned below are self-explanatory.
may ultimately be disallowed, either in whole or in part.
Rev 10/12
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