How does a property qualify for an easement deduction under federal tax law?
The Tax Treatment Extension Act of 1980, implemented by federal regulations issued on January 14, 1986, made permanent the federal income, gift, and estate tax deductions for charitable contributions of partial interests, such as easements, in real property. Restrictions must be granted in perpetuity. Gifts of “qualified real property interests” must be made to a “qualified organization” and be “exclusively for conservation purposes,” which include preservation of a “historically important” land structure. A “certified historic structure” is a building, structure, or land area, depreciable or non-depreciable, listed in the National Register of Historic Places or located in a registered historic district and certified as being of significance to the district. What are the tax consequences of an easement donation? Federal Government For federal income tax purposes, the most important benefit is that the value of the donated easement is deductible as a charitable contribution, generally n
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