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 […]
Determination of the Entire Contiguous Parcel
Valuing Conservation Easements under § 1.170A-14(h)(3) of the Income Tax Regulations This Chief Counsel Advice responds to your request for assistance regarding the valuation of perpetual conservation restrictions, or “conservation easements.” Specifically, you have asked about the application of the “Contiguous Parcel Rule” and the “Enhancement Rule” found in § 1.170A-14(h)(3)(i) of the Income Tax […]
Appraising Conservation and Historic Preservation Easements
This is a new book from the Appraisal Institute. I’m reading it now and it’s very comprehensive! Appraising Conservation and Historic Preservation Easements Richard J. Roddewig, MAI, CRE, FRICS Appraisal Institute Learn the intricacies of the appraisal process as applied to conservation and historic preservation easements! Drawing on legal, regulatory and professional appraisal literature, Appraising […]
Hooray for Hollis
Since 1998, the town of Hollis, New Hampshire has given 50% of the revenue from the Current Use Change Tax to the Hollis Conservation Commission. The thinking was obviously that land was being developed so we should help conserve more land as a balance. Hollis has a very active conservation group and has about 23% […]