Tax considerations of donating land
or granting conservation easements
Many landowners find that certain tax incentives support their choice to conserve land. Donations of land or Conservation Easements can qualify for income and estate tax deductions and a lower property tax assessment. If you are interested in becoming a donor, you should consult with an accountant and a real estate appraiser to determine how the tax code provisions would apply in your particular circumstances. The IRS requires that a "qualified appraisal" be performed by a "qualified appraiser." The Peaks Island Land Preserve can help you identify such appraisers in the Portland area.
The tax implications of your conservation plan will depend on the value of your gift, your financial circumstances and other factors. It is wise to consult with an accountant prior to the donation to understand fully the tax benefits available to you for making a donation or land or an easement.
In every case, to qualify for a federal tax deduction, your donation must be made to an IRS-qualified, tax-exempt organization (like the Peaks Island Land Preserve) or to a government agency. The donation must be complete and irrevocable, without strings or contingencies.
It is important that you understand the options available to you in donating land or Conservation Easements. For more information, feel free to contact a board member or come to one of our monthly board meetings.
Prepared with assistance from the Maine Coast Heritage Trust