Donation of property avoids further real estate or estate taxes, and maximum savings can be obtained from federal and state income and capital gains taxes. Under California state tax laws, a property owner, whether a private. An individual or a corporation, is entitled to a tax reduction by donating all or part of the property to a qualifying charitable organization. Conservation Easements - Conservation easements are restrictions that landowners place on their property voluntarily or for a price. Conservation agencies or private organizations can obtain protection of natural areas by acquiring the rights of an owner which would otherwise be inconsistent with protection.
Easements can be for a specific term, indefinite term, or perpetual.
A landowner can donate property or easements for conservation purposes and receive tax deductions. He can also sell part and give part of the property and get a tax treatment as if he had made a bargain sale of the entire fee. To be deductible, donated easements must be perpetual. The recipient organization must be able to enforce restrictions and can never sell, trade, or give away rights received through the easement except to another conservation organization which agrees to protect those rights in the same manner. Donating the land for conservation easements can freeze a property's tax classification, reduce taxable value of the gross estate, and entitles donor to a present income tax deduction equal to fair market value of the easement.