Example: When a landowner donates land to a 501c3 land trust, the landowner can deduct the fair market value of the land from his or her federal taxes.  The amount of the deduction depends on how long the landowner has held the property.  For donations of land held for a year or more, the deduction is capped at 30% of the landowner’s Adjusted Gross Income (AGI).  For donations of land held for less than a year, the deduction is capped at 50% of the Adjusted Gross Income (AGI).  If the fair market value of the land exceeds these caps, the excess contribution can be carried forward for up to 5 tax years until the full contribution has been deducted.

 Please refer to IRS Publication 526 for more information.

Example:  A landowner earning $50,000 a year who donated a $1 million conservation easement could deduct $25,000 (50% of income) for the year of the donation and for each of an additional 15 years. This would result in a total of $400,000 in deductions.

If the landowner is a farmer, he or she can deduct $50,000 (100% of income) in the first year and then for each of the following 15 years, realizing a maximum of $800,000 in deductions.

This information does not constitute tax or legal advice.  The North Georgia Land Trust recommends interested landowners consult their legal attorney or tax advisor to evaluate financial considerations for their specific situations.