Seize tax deduction for land conservation

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in Small Business Tax,Small Business Tax Deduction Strategies

Do you own pristine land in the countryside that you would like to preserve for eternity?

Strategy: Donate a “conservation easement” to a qualified charitable organization. The easement generally allows others to enjoy the land or its views and wildlife. As long as you meet certain tax law requirements, you can deduct the value of the benefit donated to the charity.

What’s more, you still own the land, subject to the restrictions imposed by the easement. If you later sell the property, the easement remains in place.

How much is the deduction? The IRS says that the deduction is equal to the difference between the fair market value (FMV) without the easement and the FMV with it.

Best approach: Have an independent party appraise the property. Use a licensed professional appraiser with experience and a solid reputation. If the IRS ever challenges the deduction, it will likely call on its own experts to establish the FMV. The app...(register to read more)

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