Donating an Easement
The property owner who donates a conservation easement may receive a tax benefit in return under current tax laws. The value of the donation qualifies as a charitable contribution, which is deductible for federal and D.C. income, estate, and gift tax purposes.
The deduction – equal to the diminution in value resulting from burdening the property with the easement’s restrictions – is determined by a professional appraiser selected and hired by the donor. How much is the typical deduction? Because each property is unique, there is no set formula for estimating the value – it depends on the property and the nature of the restrictions that the easement imposes.
