Land

tax benefits of donating land and conservation easements

Donating your land for conservation is one of the most meaningful gifts you can make—and it can also provide significant financial benefits.

When you donate land or a conservation easement to HeartLands Conservancy, you may be eligible for a federal income tax deduction equal to the appraised fair market value of the donated property.

This deduction can help reduce your taxable income in the year of your gift, and any unused portion can generally be carried forward for up to 15 additional years—giving you plenty of time to realize the full benefit.

For qualified farmers and ranchers, the federal tax benefits are even more generous. If over 50% of your income comes from farming, you may be able to deduct up to 100% of your adjusted gross income (AGI) in the year of your gift (compared to a 50% limit for other donors), with the same 15-year carryforward. This means that, for many farm families, donating a conservation easement or donating land can offer substantial financial flexibility while ensuring the land remains available for agriculture forever.

In addition to income tax savings, donating land or a conservation easement can also reduce the taxable value of your estate, potentially lowering or eliminating estate taxes—providing peace of mind for your family and future generations.

 

Weilbacher Family Farm

At a Glance: Tax Benefits of Donating a Conservation Easement

For All Landowners

  • Deduct up to 50% of your AGI
  • Carry forward unused deduction for up to 15 years

For Qualified Farmers & Ranchers

  • Deduct up to 100% of your AGI
  • Same 15-year carry-forward period

Other Potential Benefits

  • Lower estate tax burden
  • Possible reduction in property taxes
  • Partial gift option through a bargain sale

The conservation easement must meet IRS requirements and conservation purpose. A qualified appraisal is required.

Have questions? Anna McAtee is here to answer your questions. Please give her a call (618) 566-4451 ext. 23 or send her an email at an*********@*******************cy.org for a no-obligation conversation. 

Conservation Action Nitzsche

We’re here to help

Because every situation is different, we encourage farm families and landowners to talk with their tax advisor or estate planner. We’re happy to work with you and your advisors to ensure your gift meets your conservation goals and maximizes any available tax advantages.

 

Contact our Land Conservation Manager, Anna McAtee for more information.

an*********@*******************cy.org

(618) 566-4451 ext 23