Location
Chicago, IL
Start Date
14-12-2012 8:30 AM
End Date
14-12-2012 9:30 AM
Description
Significant public benefits can be generated by land that is not developed, land often characterized as “open space”. A conservation easement is a voluntary agreement between a land owner and an organization that is designed to protect those benefits by keeping the land in private ownership and use, while also preventing the land from being further developed. State and local land trusts held easements on nearly nine million acres in the U.S. in 2010, nearly four times the figure from 2000. The Nature Conservancy holds easements on an additional three million acres. Easements are frequently donated to these organizations, often resulting in significant tax benefits to the donor. Easements also affect property values, both on the parcel under easement and on surrounding parcels. This session discusses the basic terms of a conservation easement and common variations that occur as a result of state law and property characteristics; IRS rules for easement deductibility and valuation; the federal, state, and local tax effects resulting from the creation and donation of easements; and the challenges that are created by these policies, including the possibility of future modification and termination of easements.
Recommended Citation
Sundberg, Jeffrey, "Using conservation easements to protect open space: Public policy, tax effects, and challenges" (2012). IAAO Annual Legal Seminar. 8.
https://researchexchange.iaao.org/legal/legal12/sessions/8
Using conservation easements to protect open space: Public policy, tax effects, and challenges
Chicago, IL
Significant public benefits can be generated by land that is not developed, land often characterized as “open space”. A conservation easement is a voluntary agreement between a land owner and an organization that is designed to protect those benefits by keeping the land in private ownership and use, while also preventing the land from being further developed. State and local land trusts held easements on nearly nine million acres in the U.S. in 2010, nearly four times the figure from 2000. The Nature Conservancy holds easements on an additional three million acres. Easements are frequently donated to these organizations, often resulting in significant tax benefits to the donor. Easements also affect property values, both on the parcel under easement and on surrounding parcels. This session discusses the basic terms of a conservation easement and common variations that occur as a result of state law and property characteristics; IRS rules for easement deductibility and valuation; the federal, state, and local tax effects resulting from the creation and donation of easements; and the challenges that are created by these policies, including the possibility of future modification and termination of easements.