Federal Tax incentives for Conservation Easements

Few question regard's Conservation Easements Tax credit / Deductions.

Scenario: land purchased many years ago for 100K, today having a fair market value of $10M.
A conservation easement will prevent any development and lower its value to $1 million therefor result in a $9M available for tax deductions.


1.) Considered Credit or Deductions ? (reducing my taxable income or my tax bill dollar to dollar.)
2.) Since it is non cash contribution, do i get taxed on the profit margin that i'm claiming as deduction.
3.) If Q#2 is true, do the total value would be considered as taxable realize gain (100K to a $1M margin).
4.) Are thos Tax credit / Deductions - transferable, could be sold ? if yes how & where?
3.) If Q#4 is true and #2 is a NO, do i get taxed on that sale and how?


Thanks in advance for any input.

 

Et quia qui excepturi nesciunt quia assumenda. Repellat rerum illo dolores aspernatur. Quidem voluptatem rerum cumque sint natus omnis. Excepturi neque ea dolores asperiores dolorum maxime accusantium.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (85) $262
  • 3rd+ Year Analyst (12) $184
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (65) $168
  • 1st Year Analyst (196) $159
  • Intern/Summer Analyst (143) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”