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Land Preservation Services                           

2) Conservation Easement Donation

A conservation easement is a legally binding covenant between current and future property owners and an organization such as the CCFT which preserves significant natural areas (i.e. stream valleys, farmland, woodland, wildlife habitat, unique plant communities) of a property by restricting selected uses.  A conservation easement allows a property owner to retain ownership of his property, including the ability to pass the property on to his heirs or sell the property, while still providing for the site's
protection. It assures that future use of the property will be consistent with conservation purposes through specific clauses in the easement document. The property remains in private ownership and does not need to be opened to the public.

            For Example: Tax Benefits- Conservation Easement

A charitable deduction for a conservation easement donation is valued through
appraisal of the difference between highest and best use value of the land (based on the development potential of the land under current zoning) and the restricted value of the land.

So, if 10 acres of land is valued at $100,000 with development potential (highest and best use), and that same land is valued at $25,000 with use restrictions, the VALUE that you GIVE AWAY is the conservation easement value: $75,000. 

The valuation will depend on how you restrict its use.  For instance, the valuation would be less if a building envelope for one residential lot is allowed.

You may then claim the conservation easement value in the same way you would a fee simple gift: up to 50% of your adjusted gross income, with a possible fifteen-year carry forward to allow you to use the full value of the gift.
In this scenario, if you were in the 35% tax bracket and your donation value is $75,000, your actual total savings in income tax would be $26,250. An easement runs with the property in perpetuity. A third party will always monitor the easement to assure compliance.

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