The conservation easement: Handle with care
Abstract: A conservation easement is an agreement to permanently restrict some or all of the development rights associated with a property. It can be a powerful estate planning tool, enabling donors to receive significant income and estate tax benefits while continuing to own and enjoy their property. So it’s no surprise that the IRS scrutinizes easements to ensure that they meet the tax code’s requirements. This article explains that the easement must meet one of four conservation purposes, describes the tax benefits, and lists common mistakes taxpayers make when donating easements.