Can a landowner deduct the entire value of a conservation easement from their federal income tax?
Currently IRS will allow a deduction up to 50% of the donor’s annual adjusted gross income (AGI) in the year that the donation is made. Any unused portion of the deduction can be carried forward and used over the next 15 years, up to 50% of the donor’s adjusted gross annual income in those years. An additional incentive has been provided for qualifying farmers and ranchers, who can use the deduction up to 100% of their AGI over 16 years. It is important to note that unless these new tax incentives are extended, they will only apply to easement gifts made in 2008 and 2009! There are a number of variables that must be accounted for to determine the usefulness of the donation deduction, so a professional opinion should always be sought.
Related Questions
- Can a private landowner donate a conservation easement to convey away the propertys development rights but still continue to use the property as before the easement was granted?
- Can a landowner deduct the entire value of a conservation easement from their federal income tax?
- How is the value of the agricultural land conservation easement determined, and by whom?
