Virginia LPC - 1 - Schedule A and Instructions - (Allocation Schedule and Calculation of Fee)

LPC - 1 - Schedule A and Instructions - (Allocation Schedule and Calculation of Fee)
LPC-1 Schedule A - Application for a Land Preservation Credit Allocation Schedule and Calculation of Fee
Form LPC-1
Schedule A

Application for a Land Preservation Credit
Allocation Schedule and Calculation of Fee

*VALPCA123888*

•	 For an original Land Preservation Tax Credit derived from a donation by joint donors including married taxpayers, provide the information
requested for each person or entity. Credit will be granted to one taxpayer per line per SSN / FEIN.
•	 If you are a pass-through entity (such as an S corporation), provide the information requested for each person or entity receiving
a credit amount. A separate Schedule A must also be completed for each pass-through entity receiving a credit amount. Enclose
additional pages, if needed.
•	 If the allocation is to more than 15 persons/entities, we recommend submitting a CD or disc. Please call (804) 786-2992 for disc format.
•	 For a donation made on or before December 31, 2006, complete Section I (if applicable) and II.
•	 For a donation made on or after January 1, 2007, complete Sections I (if applicable), II, and III (if applicable).

Section I – Pass-Through Entity Information
For a Pass-Through Entity, Name

For a pass-through entity, do you have a tax matters representative?

 No	

FEIN

Phone Number

Representative’s Phone Number

 Yes (Enter name here)

Original Credit Transaction Number (For Office Use Only)

LP

Section II – Credit Holder Information
Credit Holder Information

1.

2.

3.

4.

5.

6.

Amount

Name

SSN / FEIN

Street Address

Entity Type

City, State, ZIP Code

Phone Number

Name

SSN / FEIN

Street Address

Entity Type

City, State, ZIP Code

Phone Number

Name

SSN / FEIN

Street Address

Entity Type

City, State, ZIP Code

Phone Number

Name

SSN / FEIN

Street Address

Entity Type

City, State, ZIP Code

Phone Number

Name

SSN / FEIN

Street Address

Entity Type

City, State, ZIP Code

Phone Number

Name

SSN / FEIN

Street Address

Entity Type

City, State, ZIP Code

Phone Number

Total Credit Amount Allocated
Section III – Calculation of Fee (For donations made on or after January 1, 2007.)
1. Enter the total credit amount allocated, less any gifts.
2. Fee Due – Multiply the total credit amount allocated by 5% (Line 1 times 0.05).
Va. Dept. of Taxation  4901040-W  Rev. 08/23

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Instructions for LPC-1, Schedule A
Allocation Schedule and Calculation of Fee
Lines not mentioned below are self-explanatory.
This schedule should be used by multiple donors (including
married spouses when both are on the deed) and passthrough entities to report the details of their credit allocations.
A pass-through entity may appoint a Tax Matters Representative
whom the Tax Commissioner may consult with regarding
credits that have been allocated or transferred. This
representative may be a general partner, a member, a
manager, or a shareholder. If a Tax Matters Representative
has been appointed, check the “yes” box and enter the
representative’s name and phone number in the appropriate
boxes.
•	

If you are a pass-through entity (such as an S corporation),
provide the information requested for each person or
pass-through entity receiving a credit. A separate LPC-1
Schedule A must be completed for each additional entity
receiving a credit.

•	

Enclose additional pages, if needed.

•	

For a donation made on or before December 31, 2006,
complete Section I (if applicable) and II.

•	

For a donation made on or after January 1, 2007,
complete Sections I (if applicable), II, and III. Please note
multiple owners who are listed separately on the deed do
not owe a fee.

•	

If the allocation is to more than 15 persons/entities, we
recommend submitting a CD or disc. Please call (804)
786-2992 for the required spreadsheet format.

Section III – Calculation of Fee
General Information
This section must be completed for an allocation made by a
pass-through of a credit which derived from a donation made
on or after January 1, 2007.
A 2% fee of the appraised value of the donated interest is
imposed on all transfers arising from the sale of credits and
on pass-through allocations.
For deaths of credit holders who originally earned the credit
that occur on or after July 1, 2018, the 2% transfer fee does
not apply to credits transferred to a designated beneficiary
or the next person who is eligible to receive the credit,
according to the rules of intestate succession as described
in Va. Code § 64.2-200.
A pass-through entity is exempt from the 2% fee to the
extent credits are distributed to nonresident owners and the
pass-through entity applies such credits to the pass-through

entity withholding tax. Credits distributed to resident owners
and nonresident owners who are not subject to the passthrough entity withholding tax remain subject to the transfer
fee. Because the statute relates the 2% fee to the donated
interest and the credit is 40% of that figure, when calculating
the fee at the credit level it equates to 5% of the credit amount
being transferred or allocated. An example of the calculation
is as follows:

Scenario
Presented
in Va. Code
§ 58.1‑513

$10,000	(donated interest being
transferred/allocated)
x

.02	(fee multiplier imposed
by statute)
$200	 (fee dollars collected by
statute)

$10,000	(donated interest being
transferred/allocated)

Calculation of
Credit Value

x 

.40	 (credit multiplier imposed
by statute)

$4,000	(credit value of the
donated interest)

If $200 is the amount of fee collected at the
donated interest level, what percentage of the
credit value generates the same fee amount?

Same Scenario
Based on Credit
Value

	 $4,000(x)	

= $200

	

x	

= $200 / $4,000

	

x	

= .05 or 5%

If you are transferring/allocating credits derived from more
than one donation, you must file a separate LPC-1 Schedule A
for the credits derived from each donation. This fee does not
apply to transfers/allocations made in 2007 and beyond on
donations made prior to January 1, 2007.
The Department of Taxation recommends that you pay
with a certified check or money order. Personal checks
may delay the processing of your transfers/allocations.