How does a landowner quantify the income tax deduction for a donated easement?
The allowable income tax deduction will be based on the value of the development restrictions that are donated to a qualified organization in the form of a conservation easement. To establish that value, it is the landowner’s responsibility to obtain a qualified appraisal rendered in writing by a qualified appraiser. The appraisal will value the property in two ways; before a conservation easement is placed on the property and after an easement were to be placed on the land. The difference between the two dollar amounts becomes the monetary value of the charitable donation of the conservation easement. For example, if a landowner has 100 acres that were appraised at $10,000 per acre for a possible housing development (the before value), and $4,000 per acre as agricultural land (the after value), then the value of the conservation easement is $6,000 per acre or $600,000. This is the amount of money the landowner would give up if he or she decided to enter into a conservation easement th
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?
- What are the typical costs associated with placing a Conservation Easement on property, even when the easement is donated?
- How does a landowner quantify the income tax deduction for a donated easement?
