Appraising Conservation and Historic Preservation Easements: An Introduction to Developing Easement Appraisals While Avoiding IRS Valuation Challenges

The federal tax code creates a charitable deduction for property owners who donate conservation easements to qualified land trusts and preservation organizations. There is currently a nationwide shortage in the number of appraisers undertaking those assignments. This program will explore the business opportunities for appraisers interested in such assignments and introduce appraisers to the techniques to properly analyze the value of charitable donations of conservation easements. Tax code regulations and sources for the generally accepted standards of appraisal practice will be explored as will the seven critical components in every conservation easement valuation assignment. Pitfalls to be avoided will be discussed and appraisal issues raised in recent Tax Court decisions explained. The program will conclude with a discussion of how to use the easement appraisal checklist published in the Appraisal Journal article as a reference when completing a conservation easement appraisal assignment. The program will be of benefit to appraisers who have never previously appraised a conservation as well as a quick review for those with prior experience with conservation easements but who need a refresher on some of key issues involved in properly completing such appraisal assignments.