Conservation Easements

One of the important property rights one has as an owner of rural land is that of any lawful use of that land, including subdivision. In some instances the state and county tax authorities provide tax benefits if one is willing to forgo some of these rights. The benefits are in three forms

Federal Tax Deduction for the value of the donation of an easement on land that restricts its use or further development

State Tax credit for the same donation valued at 50% of the donation value. This credit is transferable to another taxpayer

County Tax deferral for the use of land for agriculture purposes. This credit extends annually as long as the land qualifies.

A simple example - land worth $500,000 unrestricted, is appraised to be worth $300,000 when a permanent easement to keep the land undivided and in agriculture is made. For the owner in the 30% marginal Federal Tax bracket, this represents a tax savings of $60,000 useful both in prior and future tax years. The State tax credit would be $100,000 and the County tax savings would be about $4000 per year, or $80,000 for a 20 year period. Thus the easement is worth to the owner $240,000 over a 20 year period.

Only certain types of properties would meet the criteria to be eligible, and the land would have to not have been already subject to an easement.

Of course you should consult your own tax and legal professionals before deciding on such a transaction

In our inventory are suitable examples where conservation easements would yield both an exceptional heritage site and an impressive return. Please contact us with your needs so we may discuss this further.

info@stagebridge.net ---reference conservation easements