Conservation land donations: real preservation, done by the actual landowner

Primary sources: IRC §170(h); Treas. Reg. §1.170A-14; qualified appraisal requirements under §170(f)(11)

The short answer

A landowner who genuinely owns real property can donate a conservation easement — a permanent restriction limiting development or use, held by a qualified land trust or government entity — and take a charitable deduction for the value of the development rights given up. This is completely different from the syndicated conservation easement deals we've reviewed separately (see that review), where investors buy into an LLC days or weeks before a wildly inflated appraisal manufactures a deduction many times their investment. Here, you already own the land, the restriction is genuine, and the deduction is based on a defensible, qualified appraisal of the actual value given up — not a promoter's target multiple.

Who this works for — and who it doesn't

Good fit

Landowners who already own property with real conservation, scenic, or historic value and want to protect it permanently
Owners comfortable permanently restricting future development or use rights on their own land
Situations where the appraisal reflects a defensible before-and-after value, supportable independent of any tax motive

Not a fit

Anyone being pitched an investment in an LLC formed specifically to buy land shortly before donating an easement
Land with no genuine conservation, scenic, or historic significance — the qualification test is real
Owners who might want to develop or sell the restricted rights later — the restriction is permanent

How it works

Confirm the land qualifies for a real conservation purpose — habitat, open space, scenic, historic, or public recreation value under the statute.
Identify a qualified holder — an accredited land trust or government entity with the resources to enforce the restriction in perpetuity.
Commission a qualified appraisal from an independent, credentialed appraiser using the before-and-after valuation method, with real comparable sales support.
Record the easement as a permanent restriction on the property's title, binding on all future owners.
Claim the deduction, subject to AGI percentage limitations, with carryforward available for amounts exceeding the annual limit.

Common mistakes

The appraisal is where legitimate donations and syndicated abuse diverge most sharply. A defensible, independently supportable valuation is night and day from a promoter-driven multiple, and the IRS scrutinizes every large easement deduction against exactly this standard.

Using an appraiser connected to a promoter rather than a genuinely independent professional
Claiming a "highest and best use" for development that was never realistically available given zoning or access
Not securing a qualified, capable holder able to actually monitor and enforce the restriction long-term
Treating the restriction as anything less than truly permanent when making the decision

Considering donating a conservation easement on land you own?

We'll help you find a genuinely independent appraiser and make sure the deduction is built to withstand scrutiny.

Book a free consultation