Appraisals of land, especially land with subdivision potential, are substantially different from typical residential property appraisals. Appraisals of conservation easements are even more highly specialized. The IRS has specific requirements for reporting on and determining the value of charitable gifts. These are highly detailed and complex for gifts of property valued at more than $5,000, […]

IRS Form 8283 is required for all non-cash contributions valued at greater than $500. While the land trust’s signature on Form 8283 does not represent agreement with the claimed value, the IRS has asked that land trusts use common sense in questioning appraisals that seem inflated and that land trusts help landowners do the right […]

Estate Tax Reductions and Exclusions For landowners who will leave sizable estates upon their death, the most important financial impact of a conservation easement may be a significant reduction in estate taxes. Estate taxes often make it difficult for heirs to keep land intact and in the family because of high estate tax rates and […]

An IRS appraisal is required when you are donating a conservation easement AND you want to claim a tax deduction (and who doesn’t!). A Conservation Easement is also known as a partial acquisition. With a conservation easement, you are deeding away some of your development rights in perpetuity. You can never get them back. Two […]

Accuracy-Related Penalties The Pension Act imposes accuracy-related penalties of 20 percent for an underpayment of tax resulting from a “substantial” valuation misstatement, and 40 percent for a “gross” valuation misstatement. A “substantial” valuation misstatement is a value 150 percent or more of the amount determined to be the correct value, and a “gross” valuation misstatement […]

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 tax deal brokered between President Obama and Congress gave us […]