 Tax Benefits of Conservation Easements Please note: The following material on potential tax benefits, and the accompanying examples, are intended to provide a potential donor with a basic understanding of the tax benefits of conservation easements. Many of the complexities affecting individual situations are not addressed. Therefore, a potential donor should consult his/her tax advisors regarding the tax benefits of conservation easements before taking any action. The value of a qualified conservation easement is treated as a charitable contribution and, therefore, placing a conservation easement on the taxpayer's property may result in income, estate, and/or gift tax benefits. The value of the easement is established by a "before and after" appraisal completed by a qualified appraiser. The purpose of the appraisal is to determine the value of the property before the conservation easement is placed on the property, and after the restrictions of the conservation easement are placed on the property. The reduction in value of the property resulting from the easement establishes the value of that easement. One potential tax benefit is a reduction in estate and gift taxes. Because of increases in land values over a number or years, many families with agricultural property must sell some or all of the property to pay estate taxes, thus preventing them from retaining their family heritage. A conservation easement reduces the value of the property, and often results in a saving of estate and/or gift taxes. The tax benefits for conservation easements were recently expanded! For more information, contact GVLT or your financial advisor.
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