Enhanced tax benefits for donating a conservation easement were renewed during the January 2013 “fiscal cliff” negotiations, but are currently set to expire on December 31, 2013. These benefits have proven to be an invaluable tool in enabling conservation-minded landowners to permanently protect important natural or historic resources on their land. The incentives apply to a landowner’s federal income tax and will allow most easement donors to:
- Deduct up to 50% of their adjusted gross income in the year of the donation;
- Deduct up to 100% of their adjusted gross income in the year of the donation if the income is derived from ranching or farming; and
- Continue to take deductions for as long as 16 years
While most landowners cite the love of their land and desire to keep it relatively undeveloped as primary reasons to protect their property, enhanced tax incentives have made this type of protection economically feasible and beneficial for even moderate-income landowners.
The attached brochure contains more detailed information regarding the incentives. We encourage you to consult your legal and tax (professional) advisor regarding how these incentives may apply to your personal financial situation.