TAX BENEFITS
Special Tax Incentives for Donating Conservation Easements
When you donate a conservation easement on your land, you may be eligible for a charitable tax deduction for your federal and, in some cases, state income taxes.
A number of principles and I.R.S. criteria apply to the donation of conservation easements. In general, a donation can be eligible for an income tax or estate tax deduction if the conservation easement conserves land that: involves significant farmland, forestland, or open space that either provides scenic enjoyment for the public, furthers public conservation policies, or includes important historic lands or buildings; or includes relatively natural habitats for fish, wildlife, plants, or similar ecosystems; or is used by the public for outdoor recreation or education.
We work closely with landowners to prepare conservation easements that protect high quality resources that benefit the Lowcountry and the health and future of our state. It is important to speak with your own attorney or tax adviser if you are interested in seeking a tax deduction.
In order to claim an income or estate tax deduction, a landowner must first obtain a qualified independent appraisal. Appraisals of conservation easements must meet certain time requirements and include factual information required by the I.R.S.
A donor of a qualified conservation easement may deduct up to 30 percent of his or her adjusted gross income. This is deductible against the donor’s federal and, in some cases, state income taxes. If the value of the gift is not used up in the first year, the unused portion may be carried forward for five additional years. Special rules apply to the deductibility of land owned less than one year.
When you donate a conservation easement on your land, you may be eligible for a charitable tax deduction for your federal and, in some cases, state income taxes.
A number of principles and I.R.S. criteria apply to the donation of conservation easements. In general, a donation can be eligible for an income tax or estate tax deduction if the conservation easement conserves land that: involves significant farmland, forestland, or open space that either provides scenic enjoyment for the public, furthers public conservation policies, or includes important historic lands or buildings; or includes relatively natural habitats for fish, wildlife, plants, or similar ecosystems; or is used by the public for outdoor recreation or education.
We work closely with landowners to prepare conservation easements that protect high quality resources that benefit the Lowcountry and the health and future of our state. It is important to speak with your own attorney or tax adviser if you are interested in seeking a tax deduction.
In order to claim an income or estate tax deduction, a landowner must first obtain a qualified independent appraisal. Appraisals of conservation easements must meet certain time requirements and include factual information required by the I.R.S.
A donor of a qualified conservation easement may deduct up to 30 percent of his or her adjusted gross income. This is deductible against the donor’s federal and, in some cases, state income taxes. If the value of the gift is not used up in the first year, the unused portion may be carried forward for five additional years. Special rules apply to the deductibility of land owned less than one year.
View a comprehensive tax brochure here.