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The value of the donated easement for purposes of claiming a federal income tax deduction is calculated as the difference between the fair value of the eased property before the easement is granted minus the value of the eased property after the easement is granted.
On Dec. 23, 2016, the IRS issued Notice 2017-10, which identified all syndicated conservation easement transactions beginning Jan. 1, 2010, and all substantially similar transactions, as ?listed transactions? as defined in Regs. Sec.
Such an easement usually limits the usefulness of the property and lowers its value. When a conservation easement meets criteria spelled out in the Internal Revenue Code, the owner may qualify for a tax deduction based on the property's reduction in value.
Conservation easements play a crucial role in finance by offering landowners tax benefits, reduced property taxes, and other financial incentives. They help support the conservation of valuable land while providing financial advantages for both landowners and investors.