CONSERVATION EASEMENTS
In many cases a conservation easement can prevent the
maximum possible economic
exploitation of land, keep land looking nice, and still permit traditional income
producing
land uses.
Conservation easements can protect farms and still permit
continued agricultural activity
protect ranches and still permit traditional ranching uses, protect forestalled and still
permit
prudent timber management and harvesting. Conservation easements can permit limited
residential development and even commercial hunting and fishing subject to carefully
defined
limitations.
You can get an income tax deduction for the value of a
conservation easement that is given to a
qualified charitable organization. The value of an easement is equal to the difference in
the
value of the property before and after it is restricted by the easement. Generally, the
value of
the gift may be deducted up to 30% of the donor's income for the year of the donation. Any
amount of the deduction remaining after the first year can be carried forward and deducted
against income in the five following years up to 50% of the donor's income for the year.
Most landowner's who donate conservation easements cannot
"use up" all of the income tax
deduction because of the 30%-of-income limitation. Most donors are motivated by a love of
their land and a looming estate tax problem. Good planning can make maximum use of these
tax benefits.
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