When a Conservation Easement is placed on a property, there is a donated value of charitable contribution to the land preservation organization.
The value of the Donated Conservation Easement is determined by a specialized appraiser, selected and paid for by the landowner. The appraisal of the property is done in two ways. First the land valued at the highest use (or development value), and then at a value with the Conservation Easement restrictions in place. The difference between the two values equals the Conservation Easement Value which is also considered to be the value of the charitable contribution to the land preservation organization.
IRS regulations require you to use a specialized and qualified appraiser who understands Conservation Easements and land preservation organizations. The completed appraisal will show the value of the donation of the Conservation Easement for your tax purposes. Farm & Natural Lands Trust advises all Conservation Easement donors to work with their own financial or tax advisers and attorneys in regard to their tax paperwork.
