Are there other potential tax benefits associated with conservation easements?
Gift taxes: When a person gives land to someone who is not his or her spouse, the gift is subject to federal gift taxes if its value exceeds the maximum tax-free amount of $10,000 given to any one person per year. Lowering the appraised value of the land through a qualified easement may allow the owner to give more land in any one year without incurring a gift tax, or it may help reduce the amount of tax imposed.Property taxes: The amount of property tax is usually a percentage of the property s market value; the market value reflects its development potential. If a conservation easement reduces the development potential of the property, it may reduce its assessed market value, thereby lowering the owner s property tax. If property is not already in a special tax program for timber or agricultural production, and if a conservation easement significantly reduces the market value of the property, then the landowner should consider asking the County Assessor for a reduced valuation. Prosp
