tax issues

Joe McGovern / INHF

By implementing permanent conservation protections, you might qualify for tax benefits that can assist those of moderate as well as wealthy means.

These tax reductions can sometimes significantly reduce the "bottom line" cost of your donation.

Talk it over

Even if tax savings aren’t a prime motivator for your conservation efforts, don’t ignore them. Talk with your tax advisor about issues like these:

• How to time your gift for maximum advantage.
• How to weigh the benefits of making a bequest (which provides no tax benefits during your lifetime) vs. other options.
• How tax benefits can make your gift more affordable. For example, landowners who thought they needed fair market value often discover they can afford a bargain sale — while those considering a bargain sale discover they can afford to donate a larger portion of the price.

Finally, it bears repeating: Tax laws are complex and constantly changing. Always get professional advice!

For more information

• See the Tax Case Study, which shows how tax benefits can work.
• If you pay Iowa income taxes, don't miss the Iowa Income Tax Credit information.

NOTE: The expanded federal tax incentive for conservation easement donations was NOT extended into 2012. Learn more about how you can help restore this incentive for conservation-oriented landowners at http://www.landtrustalliance.org/policy.

Income taxes | Capital gains taxes | Estate & inheritance taxes | Property taxes | Cautions

reprinted from Landowner’s Options, © 2007, Iowa Natural Heritage Foundation