Are conservation easements, if done correctly, a good move? Essentially I can pay $60K in and get a $300K write off. Too good to be true?
Right now, these arrangements are high on the IRS’s radar and will almost guarantee an audit. This issue is with the aggressive appraisals used to justify the write off. Pass.
The current spending bill expected to pass in Congress (12-20-22) would limit easement investors to write-off no greater than 2.5x the investment. Also, additional disclosures to the IRS are going to be required. There’s a good article in the Wall Street Journal.