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.

Does My Building Qualify?

Generally, a property either listed on the National Register of Historic Places or granted Part I Certification (greater than 50 years old and in a registered historic district) will qualify for the tax deduction associated with donation. Because tax law is complex and certain qualifications or exceptions could apply to your situation, you should consult your tax advisor before donating. The L’Enfant Trust reserves the right to accept or decline any proposed donation.