How Estate Taxes and Conservation Easements are Linked

Posted by admin on February 7, 2013

Conservation easements restrict future development of specific acres of land, transferring some of the property rights over to a nonprofit or government organization. This type of easement allows for conservation of acres of land while property owners are still able to maintain private ownership.

When a conservation easement is put into place, the value of the property is usually lowered because those buying land feel that the restriction is a burden. Due to the devaluation of conserved property, the federal government has offered estate tax breaks for those making a donation. In 2013, Congress passed legislation that provided permanent estate tax relief for donated acres of land valued at up to $5 million. This value was indexed for inflation at a 40 percent rate. The Land Trust Alliance continues to advocate on behalf of property owners to achieve favorable tax legislation in regards to conservation.

In addition to estate tax breaks, those donating acres of land for conservation may also receive tax breaks on a state or local level. The transferable tax credits in Colorado, Georgia, New Mexico, South Carolina and Virginia are the most appealing for donors. These credits can be sold to an individual, a party or a corporation with high tax liability for an immediate payout. Other states throughout the country have other income tax benefits for conservation donations of acres of land, which can vary widely between state, county and town.

Conservation easements are a great way to receive beneficial tax breaks while also conserving acres of land for the future. Many property owners don’t even realize that these types of easements exist. Whether or not a property owner is interested in making a donation, it is important to understand all of the options available as an owner of acres of land. Individuals interested in buying land, with or without a conservation easement, should also fully understand their options. If you are looking to buy land in your area, visit AllAcres.com to immediately be placed in front of hundreds of high quality acres of land. Our land professionals can work with you to find acreage sales that fit your needs and your budget. Call AllAcres at (855) 227-3741 or contact us online today.