A new law affecting conservation easements was included in the Consolidated Appropriations Act. Dubbed the Conservation Easement Program Integrity Act, it aims to address taxpayers who have twisted the tax law to develop abusive “syndicated” conservation easements. They use inflated appraisals and partnership arrangements to reap “grossly inflated” deductions. Previously, taxpayers could claim charitable deductions for qualified donations of real property to charity. Under the new law, charitable deductions for qualified conservation contributions aren’t allowed if the claimed deduction exceeds 2.5 times the sum of each partner’s relevant basis in the partnership making the contribution.
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