Landowner who donate conservation easements may be eligible for federal income tax deductions. Charitable deductions can be applied towards offsetting income and capital gains taxes, and looking further down the road, will reduce the potential for future estate taxes.
To determine the value of a conservation easement, and the charitable deduction associated with the donation an independent appraisal process is needed.
How this works:
- Step 1. Conservation Easement is prepared identifying the resources that will be protected, while identifying areas that will be used in the future for any buildings etc.
- Step 2. Landowner consults with tax accountant or attorney about the donation and subsequent tax deductions.
- Step 3. Landowner seeks an independent appraisal of the property to determine the value of the gift.
Of Special Note:
There are very specific IRS criteria for charitable deductions for conservation easements. This includes, but is not limited to the qualifications of the appraiser, the timing of the appraisal to closing, and the exact nature of the resources being protected etc. Our office can help make you aware of all the IRS requirement before beginning the process.