THE CONSERVATION RESTRICTION:
Conserve Your Land While You Own It
Your Land Has Value
There is a financial value associated with being able to make full use of your land, including your “development rights.”
In the case of a forest, the land would have an overall monetary value when developed to its full potential. If not developed, the land is usually valued for less. The difference between these two valuations is the value of the development rights.
Some landowners donate the CR valuation, taking a charitable deduction if the conservation agreement benefits the public by permanently protecting important conservation resources and meets other federal tax code requirements. Others might choose to sell the CR valuation. In both circumstances, a CR can lower property taxes because the overall taxable value of the property has decreased.
Conserving your land with a CR can also help you pass your land on to the next generation intact. By limiting the land’s development potential, the CR lowers its market value, which in turn lowers estate tax. Since federal and state laws change from year to year, it’s important to get advice from an attorney or financial advisor who understands land conservation.