Donating a conservation easement can provide taxpayers with a legitimate charitable deduction, so long as the donation meets certain requirements. But beware of bad actors promoting conservation easements with deductions that exceed the amount invested in the property. Typically, you’re allowed to claim a charitable contribution deduction for the fair market value of a conservation easement donated to a qualified charity. But the IRS is paying close attention to abusive transactions and imposing penalties where warranted. According to IRS Commissioner Danny Werfel, “Taxpayers should be wary of anything that seeks to completely eliminate a legitimate tax responsibility.”
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