The Changing Landscape of Conservation Easements
Conservation easements are quickly gaining ground among landowners. According to IRS data, nearly 3,000 U.S. taxpayers deducted $766 million in easement donations from their taxes in 2010 alone. Between 2003 and 2010, taxpayers saved an estimated $4 billion because of their conservation easements.
This has led to some concern about abuse of charitable contributions for conservation easement donations—concern that the deductions are inflated, or based on incorrect appraisals, or taken for easements that don’t really serve a conservation purpose.
In response, new laws have tightened the rules regarding conservation easements, and IRS scrutiny of conservation easements has grown.
That’s why it’s important to consult with a knowledgeable tax professional or financial adviser if you’re setting up a conservation easement. He or she can help you sort out how the changing requirements may affect your property—and your pocketbook.
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