Tax Benefits header

Federal Income Tax Deduction

When you protect your land, you may be able to claim one of these two federal income tax deductions:

  • A federal charitable gift deduction for land donations or bargain sales 

OR

Like a check to your favorite charity

Your donation or bargain sale of land for conservation provides lasting public benefit. You are caring for the land, water and wildlife now and into the future. You might also provide opportunities for future Iowans to encounter nature on the land you protect.

Because of this public benefit, your donation of land or land value is a qualified charitable contribution, eligible for the same federal tax benefits as other charitable gifts you may be donating. Qualified charitable contributions are generally eligible to be claimed as itemized federal deductions, within the income limits set by the IRS.

You begin to claim this deduction in the same tax year in which you donate the land or land value. If your gift value exceeds what you can claim that year, you can carry forward the unclaimed portion to the next tax years, up to five more years, or until the gift is fully claimed.

See Income Tax Benefits for background about income tax deductibility.

Easement or other method?

Your tax deduction should not be the driving factor when you choose the protection method that’s best for your situation and your land.

Landowners or advisers can be tempted to choose a conservation easement over other methods simply because an enhanced federal income tax deduction is offered for donated conservation easements — particularly easements on working lands such as farms and ranches. But this is only one factor in your decision. Other factors may be ultimately more important in successfully meeting your goals for your land.

We recommend you compare the multiple advantages of each method before deciding what’s right for you. The Getting Started section of the website and the INHF staff can help you explore your options, weighing tax benefits as well as other benefits.

Lots to think about. Let’s talk it through.
It can be hard to sort through your land protection options and tax benefits on a website. We’re here to help you through it. We can visit by phone, in person or on the land. Free. Confidential. No sales pitch. No obligation. Just the information and introductions you need to get started. Contact us.

Iowa Natural Heritage Foundation does not provide professional tax or legal advice. We encourage you to hire professional advice as needed to assist your transaction and your deduction.