Instructions For Form Lpc-2, Notification Of Transfer Of Land Preservation Credit (Page 2 of 3) in pdf

LPC-2 Instructions

• If the credit holder is a pass-through entity, provide

the information for each person or entity to which

any portion of the credit is distributed. If one of

Section I – Current Credit Holder Information

the recipients is itself a pass-through entity, then

Section I must always be completed.

another Schedule A must be filed by that pass-

through entity to report the distribution of credits

A) Credit Holder Name – Enter the name of the current

among its owners.

credit holder. If the donated land, or credit, was owned

• If you are married and each spouse is purchasing

jointly by married taxpayers, enter the name of each

a credit, each spouse must be listed separately in

taxpayer.

Section III of Schedule A.

B) Credit Holder Identification Number – Enter

Section I – Credit Information

the credit holder’s Social Security Number (SSN)

This section should be completed for all transfers.

or, Federal Employer Identification Number (FEIN).

The FEIN is required for pass-through entities and

Section II – Pass-Through Entity Information

corporations. If the donated land, or credit, was owned

A pass-through tax entity may appoint a Tax Matters

jointly by married taxpayers, enter the SSN of each

Representative whom the Tax Commissioner may

taxpayer.

consult with regarding credits that have been allocated

C) Street Address – Enter the address for the current

or transferred. This representative may be a general

credit holder.

partner, a member, a manager or a shareholder. If a

D) Contact Name – Enter the name of the person,

Tax Matters Representative has been appointed, check

if different than the current credit holder, who the

the “yes” box and enter the representative’s name and

Department should contact to answer questions

phone number in the appropriate boxes.

regarding the information provided on Form LPC-2.

Section III – Transferee Information

Section II – Declaration, Signature and

Credits will be granted to one taxpayer per line per

Notarization

SSN/FEIN. All business taxpayers should be registered

The current credit holder who is notifying the

with the Department before completing Form LPC-2. If

Department of a transfer is required to sign Form LPC-

not registered, please complete Form R-1.

2. Review the declaration carefully before signing Form

Section IV – Calculation of Fee

LPC-2. Form LPC-2 must be signed in the presence of

General Information

a notary.

This section should be completed for a transfer, or

If Form LPC-2 is being submitted to notify the

allocation made by a pass-through entity of a credit

Department of the transfer of an existing credit and the

derived from a donation made on or after January

transfer of the credit was a brokered transaction, the

1, 2007.

broker or credit holder’s representative who handled

the transaction for the credit holder is required to sign

A 2% fee of the appraised value of the donated interest

the Form LPC-2.

shall be imposed on all transfers arising from the sale

of credits and on all pass-through allocations. Because

Schedule A - Credit Allocation Schedule

the statute relates the 2% fee to the donated interest and

• For a donation made on or before December 31,

the credit is 40% of that figure, when calculating the fee

2006, complete Sections I, II (if applicable) and

at the credit level it equates to 5% of the credit amount

III.

being transferred or allocated.

• For a donation made on or after January 1, 2007,

For donations recorded from January 1, 2007 - June

complete Sections I, II (if applicable), III and IV

30, 2010, the fee is capped at $10,000 per credit holder

(if applicable).

per donation. For donations recorded on or after July

• Attach additional pages, if needed. If the allocation

1, 2010, the fee cap has been removed. If you are

is to more than 15 persons/entities, we recommend

transferring/allocating credits derived from more than

submitting a CD or disc. Please call (804) 786-

one donation, you must file a separate LPC-2.

2992 for the required spreadsheet format.

Page 2 of 3

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

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