Conservation Easements
A donated conservation easement that meets federal tax code requirements – it provides public benefit by permanently protecting important conservation resources – may qualify as a tax-deductible charitable donation. The value of the donation, determined through an appraisal, is the difference between the land’s value with the easement and its value without the easement.
Additionally, the easement lowers the property’s market value as well as estate tax value. Whether the easement is donated during life or by will, it can make a critical difference in the heirs’ ability to keep the land intact.
Land Donation
An outright donation of land to a conservancy can provide substantial income tax deductions, as well as estate tax and capital gain tax benefits. The donation of a parcel of land allows the landowner to deduct up to 100% of the fair market value of the land at the time of the gift.
Bargain Sale of Land
A bargain sale of land entitles the property owner to a charitable income tax deduction based on the difference between the land’s fair market value and its sale price. A bargain sale can offset capital gains taxes triggered by the sale as well as make the property more affordable for the Conservancy to purchase.
