Land Donations and Voluntary Conservation Easements

Call us at 703-354-5093 for more information.

Donations of land or conservation easements to NVCT may entitle the donor to significant tax benefits.  While NVCT does not give tax advice, the four basic benefits, which may be quite substantial, are summarized below. 

• First, for federal and state income tax purposes, the value of the land gift or easement must be appraised.  Generally, the value of the gift is the difference in value of the property before and after the easement.  For federal income tax purposes, the donor of a conservation easement can deduct up to 50% of their adjusted gross income for that year and up to fifteen additional years to use up as much of the value of the easement as possible. 

• Second, the Virginia Land Preservation Tax Credit allows a tax credit on state income tax equal to 40% of the fair market value of the qualified donation, which may be claimed over ten years.  Furthermore, any unused credit can be sold for use by another taxpayer.
             
• Third, the restriction on the property can lead to lower real estate taxes if the easement lowers the assessed value of the land. 
                   
• Finally, by lowering the value of the land in an estate portfolio, an easement can lead to the reduction --- or even the elimination --- of estate taxes.
  
  Donors are urged to contact their tax advisors. 

 

Start A Land Conservation Project:

If you are concerned about an area of land that is currently open space, this checklist can provide a starting point to begin a conservation effort.  The single most important factor in the success of any land conservation effort is early action. 

Once development plans are in place, it is often too late for this type of effort.

Research:
The first step in a conservation effort is to research the property and the owners.  One easy way to obtain information is to look up the property on your local government web site. Some of the Northern Virginia local government sites that allow you to search properties by address are listed below:
Arlington County:
http://www.co.arlington.va.us/reassessments/
Fairfax County:
http://www.co.fairfax.va.us/dta/re/propadd.asp
Prince William County:
http://www.pwcgov.org/realestate/LandRover.asp
When you research a property on one of these government sites, you should note the following information:

• Owner's name and address    
• Lot size    
• Zoning classification    
• Tax assessed value    
• Sales history

Contact Owner:
With the research you have done, ask friends and neighbors if anyone knows the owners, and if they do, have them introduce you.  In a polite and non-threatening way, ask the owners about their intentions for the land.  If they are open to learning more about conservation options, put them in contact with NVCT.
Conservation Options:
NVCT can help the owners explore a number of attractive conservation options including:

• Conservation easements with significant tax benefits    
• Assistance in selling their land to a conservation buyer, which might include NVCT, a local government, park authority, or individual.

If you are interested in preserving your land or you know someone who is, call us at 703-354-5093.