Tax Advantage Conservation Easements

Most landowners on the edge of growing metropolitan areas, especially ranchers and farmers, are aware of the financial planning issues posed by federal estate taxes. Land valued at one price for agriculture is often valued much higher for development. This can become an estate tax burden that can make further agricultural operations infeasible. Conservation easements are a voluntary agreement between a landowner and a land trust or government entity. The agreement allows the landowner to donate the future development rights to one of these organizations. The landowner benefits by receiving a charitable income tax deduction and a reduction in the value of the property for estate taxes. The landowner retains ownership of the land and does not have to provide public access to the land.

In the Pikes Peak Region, the major land trust organization providing assistance with conservation easements is the Palmer Land Trust. Property can be donated to a county or municipal park department to become public open space. Donors would receive a charitable deduction on their income taxes. Bargain Sale of Property Landowners can get a charitable deduction for selling their land for preservation at a reduced price. Landowners would get a tax deduction for the difference between the agricultural and development value. Landowners should consult their legal and tax professionals for advice on estate and taxes planning and land transactions.