Going through the donation of a conservation easement on your land can be an arduous process. The intent here is to give you an overview of the process from start to finish so you’ll know what to expect. 1. Purpose – There must be conservation related purpose to the conservation easement, like preserving a wildlife […]
Conservation Easements
Step 1: Purposes of a Conservation Easement
One step of Six Steps to a Happy Conservation Easement To qualify for a tax deduction, a conservation easement must be for one or more conservation purposes. Internal Revenue Code Section 170(h) defines when the conveyance of less than all of a person’s interest in real property (e.g., a conservation easement) may still qualify as […]
Step 2: Conservation Easement Options
One step of Six Steps to a Happy Conservation Easement You have lots of options as to which rights you choose to keep and which rights you choose to donate with a conservation easement. You can donate a conservation easement or donate the land “fee simple” A “fee simple” conveyance means you give up all […]
Step 3: Tax Benefits of a Conservation Easement
One step of Six Steps to a Happy Conservation Easement With a conservation easement you are giving up something of value, i.e. your development rights, and you deserve something in return. The tax benefits can be huge. If you are considering a conservation easement donation, now may be the time to act. The December 2010 […]
Step 4: Qualified Organization for a Conservation Easement
One step of Six Steps to a Happy Conservation Easement You must have an IRS-qualified donee to accept the conservation easement. Most likely it’s your local land trust…According to Section 170(h) of the Internal Revenue Code, a “qualified organization” is either: A governmental entity; or A 501(c)(3) organization that, pursuant to the Treasury Regulations, has: […]
Step 5: Qualified Appraisal and Qualified Appraiser for a Conservation Easement
One step of Six Steps to a Happy Conservation Easement The Internal Revenue Code requires a “qualified appraisal” prepared by a “qualified appraiser”. to support a tax deduction for a conservation easement. Important stuff if you want a tax deduction… Appraisals of land, especially land with subdivision potential, are substantially different from typical residential property […]
Step 6: Appraisal Process for a Conservation Easement
One step of Six Steps to a Happy Conservation Easement After the conservation easement deed prepared by the Land Trust, the appraisal report is the most important document… Basic Info gathering by you Name of land trust Conservation Easement or Fee Simple Transfer Sale, donation, or some of both (Bargain Sale) Location of land Approximate […]
Conservation Easement Q&A
How is my conservation easement value determined? The value of the conservation easement, sometimes referred to as the diminution of value caused by the imposition of the conservation easement, is determined by using the before and after method. In this method, the appraiser determines the value of the property prior to the conservation easement and […]
CONSERVATION EXPERIENCE
I have consulted or completed appraisals for these holders of conservation easements or their donors: LAND TRUST Town, State Brookline Conservation Commission (BCC) Brookline, NH Trust for Public Land (TPL) Concord, NH Dunstable Rural Land Trust (DRLT) Dunstable, MA Hollis Conservation Commission (HCC) Hollis, NH Greater Lovell Land Trust GLLT) Lovell, ME Chebeague and […]
Conservation Easement Checklist
Click here to download the checklist. The following data is required for this assignment, as applicable. Please indicate if not applicable. Surveys, legal descriptions, and title reports of the subject property as well as any other real estate contiguous to the subject that is owned by the easement donor or the donor’s immediate family. Closing […]
