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- Apr 2018
The federal income tax benefits of donating a properly structured conservation easement are similar to other gifts of land, but were recently enhanced by Congress in 2015 to encourage more landowners to use this effective land protection tool.² The new law allows the landowner to take a deduction for the value of the donated easement up to 50% of the donor's adjusted gross income for the year of the donation. For qualifying farmers or ranchers who receive more than 50% of their gross income from the trade or business of farming, the deduction limit is increased to 100% of adjusted gross income. If the deduction amount exceeds these limits, the donor may carry over the balance of the deduction for up to 15 succeeding years.
Tax benefits of conservation easements