Conservation Easements are what creates the deductions. They are a tax deduction created by the government to protect land from being developed. In 1976, Federal tax reform began allowing landowners to deduct the value of an easement as a tax deduction. The law was expanded in 2015 and now allows deductions of up to 50% of income. As you can imagine, the government made the process much more cumbersome than necessary. Without expert guidance and processing, these types of transactions should not ever be considered.
The land that qualifies must be either owned or secured. For most people, this would not be possible because many of the properties run in the millions of dollars. We have partnered with a firm that has a 20 year impeccable track record in locating, securing and splitting up the deduction over multiple investors. This enables clients to take only the amount needed to get the deduction they are seeking.
“In America, there are two tax systems: one for the informed and one for the uninformed. Both are legal.”