FORESTRY UPDATE by Gary Allen Burns 01-12

A conservation easement is a restriction on property to protect its resources. The landowner donates certain property rights – usually the right to subdivide or develop. Conservation easements may enable the landowner to qualify for tax benefits.

Federal deductions for charitable conservation easements are permitted for up to 50% of the taxpayer’s adjusted gross income (AGI) and up to 100% of the AGI for a “farmer or rancher” which includes timber owners. A “farmer or rancher” must derive more than 50% of their gross income from

the business of farming and ranching. Excess donations have a 15 year carry forward. Eligible corporations cannot be publicly traded companies.