Conservation easement on land you own
High caution: explained, not promoted.
Cratchit rates conservation easement deductions High caution, because of how often they've been abused. They're explained here so you can tell the legitimate version from the deals the IRS targets.
The legitimate version: you permanently give up the right to develop land you own, through an easement held by a qualified land trust, and deduct the value you gave up as a charitable gift. The abusive version: syndicated partnership deals that sell investors deductions several times larger than what they put in, based on inflated appraisals.
How it works
Permanently giving up the right to develop land you own, through an easement held by a land trust, can earn a charitable deduction for the value given up.
What makes it hold up
- A qualified appraisal
- The recorded easement and the land trust’s acknowledgment
- Form 8283 with the return
Risks
High scrutiny. Syndicated easement deals with inflated appraisals are listed by the IRS as abusive, and the law now limits deductions for partnership deals. Easements on land you already own, valued honestly, are a different case.
Questions to ask your CPA
- Is this my own land, or a syndicated deal?
- Who did the appraisal, and how was it supported?
Common questions
Is a conservation easement legal?
Yes, when it's on land you own, it's permanent, a qualified land trust holds it, and a qualified appraisal values it honestly.
What are syndicated easements?
Partnership deals where investors buy into land and receive a deduction far larger than their investment. The IRS lists them as abusive transactions, and the law now limits deductions for partnership easement deals.
What records are required?
A qualified appraisal, the recorded easement and the land trust's acknowledgment, and Form 8283 filed with your return.
How do I spot a bad deal?
A promised deduction that's a large multiple of what you invest, an appraisal you can't see, or land you'd never otherwise own are warning signs.
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Education, not advice. Tax law changes and every situation is different, so confirm the details with your CPA or tax advisor before acting. This page was last checked against tax law as of October 2026, including the 2025 tax law, in October 2026.