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Form 9465-FS online Sparks Nevada: What You Should Know

Agriculture and Natural Resources and Nevada Center for Rural Enterprise, provides to qualified donor(s) or other donors or other entities certain real property as a gift in trust. Under the trust agreement, real property is conveyed to the University of Nevada, Reno as long as it is not developed into a single family residential or commercial development and the real property is leased. The University of Nevada, Reno is prohibited from developing or leasing any acreage, water rights or mineral rights, or any interest in or rights to the properties, that do not exceed that allowed under the trust agreement. The lease agreement also prohibits the University of Nevada, Reno from selling any real property except to another University of Nevada, Reno campus or other University of Nevada, Reno affiliated entity. In addition, the University of Nevada, Reno is required to maintain a “gift acceptance area” in the same location of each of the real property parcels it leases from the University of Nevada, Reno, unless they are occupied. In addition to an exemption of the gift agreement from the Nevada gift tax, the lease agreement provides that, in lieu of the gift tax, all interest and expenses are not taxable if all the real property sold to other University of Nevada, Reno campuses are sold to them at fair market value in the same year they are leased back to the University of Nevada, Reno from the University of Nevada, Reno's granter, in a comparable transaction that does not result in an increase in value more than 20 percent of the initial real property value, as certified by the Department of Treasury to the Nevada Gaming Control Board. In this context, Nevada real property is defined as: real property owned by the State of Nevada, leased by the State or sold by the State, its agencies or political subdivisions with the permission of the State, and located in Nevada. The term “real property” also includes buildings, structures, improvements, improvements, premises, and common areas, whether privately owned or leased by the State.

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