Usually no charitable contribution deduction is allowed for donations of a partial interest in property. One key exception is a donation of a qualified conservation easement (Code Sec. 170(h)). In effect, a taxpayer can get a current tax deduction for a donation while continuing to enjoy his or her property along with the general public. There have been a number of recent developments impacting conservation easements.
Overview
A qualified conservation easement is a donation of real property made in perpetuity to a qualified charity exclusively for conservation purposes. Conservation purposes include: (1) the preservation of land areas for outdoor recreation by, or for the education of, the general public; (2) the protection of a relatively natural habitat of fish, wildlife, or plants, or similar ecosystem; (3) the preservation of open space (including farmland and forest land) where such preservation will yield a significant public benefit and is either for the scenic enjoyment of the general public or pursuant to a clearly delineated federal, state, or local governmental conservation policy; and (4) the preservation of an historically important land area or a certified historic structure (e.g., a building façade).
