Benefits of Conserving Your Land
PRESERVING A LEGACY
Placing a Conservation Easement on your property is a way to ensure that the land you cherish will always be protected!
COLORADO STATE TAX CREDITS
Colorado is one of only a few states that offer a transferable tax credit in exchange for the donation of a Conservation Easement. Because the tax credit is transferable, it can be sold in exchange for cash.
The tax credit is calculated as 90% of the donated value, up to a maximum tax credit of $5,000,000.
FEDERAL TAX DEDUCTION
Conservation Easements are also eligible for a charitable deduction on federal income taxes.
This deduction can be used to offset a landowner’s Adjusted Gross Income for a period up to 15 years.
In Colorado, properties that are 80 acres or more and are assessed as “agricultural” at the time of the Conservation Easement will maintain that status even if agricultural operations stop.
Extinguishing some or all of the development rights for a property through a Conservation Easement may reduce the amount of estate taxes owed when passing the property to future generations. This can provide a substantial benefit and allow a property to stay within the family.
- Due to the financial and legal impacts of this process, MALT does not render legal or tax advice. It is highly recommended that landowners consult with their legal, financial and estate planners early in the Conservation Easement process.
- Landowner(s) are responsible for compliance with IRS IRC 170, IRS Notice 2004-41, accompanying Treasury Department regulations and other Federal and State laws and rules.
- MALT does not knowingly participate in projects where MALT has significant concerns about the tax credits/deduction. Additionally, MALT makes no guarantee as to the qualifications or value of the Conservation Easement for tax purposes.