The federal income and estate tax benefits generated by the donations of conservation easements and lands in fee have played a critical role in the dramatic increase in private land protection in the United States during the last several decades. For a significant proportion of all transactions that protect private lands for the benefit of the public, donors are claiming these income and estate tax benefits as a way to mitigate the effects of lowered property values resulting from the restrictions of a conservation easement.

 

For these tax benefits to remain law, the general public and elected officials need to feel confident that the donations of land or conservation easements will yield a meaningful public benefit. Land trusts must participate in credible conservation transactions that comply with federal tax laws.

After completing this course, you will have the tools to:

 

• Assess whether a proposed conservation easement donation satisfies the requirements of §170(h) of the Internal Revenue Code and the accompanying Treasury Regulations;
• Discuss with landowners the nature of the federal income and estate tax benefits that are available for a conservation easement that satisfies the Internal Revenue Code and the Treasury Regulations;
• Understand basic appraisal concepts and requirements needed to make general judgments about the credibility of appraisals; and
• Understand what responsibility a land trust has, and what responsibility it does not have, in assuring that a conservation easement donation meets Internal Revenue Code §170(h) and the Treasury Regulations, and in assessing that the valuation claimed by the donor is defendable.

Table of Contents:

 

• A Note on the Standards and Practices Curriculum and Accredidation
• Summary
• Introduction
• Chapter 1: Compliance with the Internal Revenue Code and Treasury Regulations
• Chapter 2: Tax Benefits of Donating a Conservation Easement
• Chapter 3: Appraisals of Conservation Easements
• To Do Sheer
• Glossary
• Additional Resources
• Index

Course Materials: LTA Members: Download PDF Non-members: Purchase PDF

The Land Trust Alliance through its membership represents the majority of private land trust organizations in the United States. Its 'Land Trust Standards and Practices' of which this is a part, represent the accumulated wisdom of the field and are considered best practice.

Land Trust Alliance course materials are furnished as tools to help land trusts implement Land Trust Standards and Practices. They are provided with the understanding that the Land Trust Alliance is not engaged in rendering legal, accounting or other professional counsel. If legal advice or other expert assistance is required, the services of competent professionals should be sought. The Land Trust Alliance makes no assurances that land trusts attending or completing these courses will be granted accredited status by the Land Trust Accreditation Commission. The Land Trust Alliance is solely responsible for the contents of this book.

 

The self-assessments contained in this book are for training purposes only. They are not designed or intended to determine if your land trust is ready for accreditation.

 

Completing a course does not necessarily demonstrate that an organization is actually carrying out the practice. Therefore, the Land Trust Accreditation Commission will examine documents and information in project files to verify that each indicator practice is being carried out in the land trust applying for accreditation. This course and others in the curriculum are designed to help your land trust understand how to implement the practices.

 

Please note:

 

• The curriculum is not required for accreditation; and

• Completing the curriculum will not guarantee accreditation.

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