Ways to sell land
for conservation

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Sale at Fair Market Value
You can offer your land at fair market value to the conservation agency or organization you choose. (If the land has appreciated since its purchase, the tax savings associated with a bargain sale might yield even more net profit for you than a sale at fair market value.)

Bargain Sale
The bargain sale is an alternative that somewhat circumvents the disadvantage of a sale at fair market value, and is one of the most common forms of donation. In a bargain sale the landowner sells his or her land to a government agency or publicly-supported charity for a price less than fair market value. This allows the landowner to receive some money for the land and also claim an income tax deduction.

Installment Sale
If you want to spread income (and the tax impact) from your sale over several years, consider selling a portion of your land each year. Or a city, county, or private conservation group might purchase a single tract of land with installment payments over several years. Federal and state agencies are not authorized to buy land on the installment plan.

Sale with Reserved Life Estate
You might be able to sell your land now to a conservation agency, and continue to use it during your lifetime. For more information, see the section on Donation with Reserved Life Estate; it works the same way.

To discuss any of these options and how they can work in combination for you, contact the Iowa Natural Heritage Foundation at 515/288-1846.

For more information, e-mail Cathy Engstrom, director of communications, or call (515) 288-1846.