A conservation easement is a deed restriction landowners voluntarily place on their property to protect resources such as productive agricultural land, ground and surface water, wildlife habitat, historic sites or scenic views.  They are used by landowners (grantors) to authorize a qualified conservation organization or public agency (grantee) to monitor and enforce the restrictions set forth in the agreement.  Conservation easements are flexible documents tailored to each property and the needs of the individual landowners.  They may cover an entire parcel or portions of the property.  The landowner usually works with the prospective grantee to decide which activities should be limited, to protect specific resources.  For example, Agricultural conservation easements are designed to keep land available for farming.

VALUE OF CONSERVATION EASEMENT

With the emphasis on environmental issues and the population increase in the Southeast area, land is more valuable than ever.  Some landowners would like to preserve the beauty and function of their land, but also profit from the increased value.  Others want their land to stay in the family, but worry that estate taxes will force their heirs to sell.  

Landowners can often sell conservation easements to the government or qualified conservation organization to preserve wildlife, endure water quality and protect habitats.  The landowner maintains control and ownership of the property and often receives money for the rights.  The government or conservation organization receives assurances that the land will be protected from future development. 

Whether the conservation easement is sold or donated it is important to determine the value of the easement to establish a price or to calculate tax benefits that may be available under federal and state law.  The value of a conservation easement is generally the fair market value of the property minus its restricted value, as determined by a qualified appraiser.  

TAX BENEFITS

Individuals who grant conservations can receive several tax benefits, including gifting, tax-deferred exchanges and gains used against the basis value. Tax advantages can also assist in the transfer of property from generation to generation. An easement can lower estate taxes for heirs by maintaining the agricultural classification of the land. A conservation easement can also lower the real estate taxes on the property.

IF I GRANT A CONSERVATION EASEMENT WILL THE PUBLIC HAVE ACCESS TO MY LAND?

No. Not without your permission.

For additional information on 1031 Tax Deferred Exchanges contact Land Brokers, Inc. at 706-965-9000 or mail@landbrokersinc.com.