How Do I Enter a Conservation Easement Charitable Deduction?

Use the Charity Worksheet in the Schedule A - Itemized Deductions section to model the donation of land for conservation purposes.

Unlike the donation of appreciated securities, the contribution of land for the purposes of a conservation easement is eligible for a larger allowable deduction (as a percentage of Adjusted Gross Income).

Conservation easements are considered non-cash charitable contributions that are reported on Form 8283 with the tax return. You will want to enter the appropriate deduction for the conservation easement in the "Non-Cash, Non-Capital Gains Donation to a 50% Limit Organization (50% AGI limit)" field within the charity worksheet in Scenario Analysis.

To properly model a conservation easement, begin by accessing the Charity Worksheet within the "Schedule A - Itemized Deductions" section by clicking the pencil icon circled below.





Enter the amount of the appraised market value in the row titled "Non-Cash Non-Capital Gains Donations to 50% Limit Organizations (50% AGI limit)." Given the increased scrutiny on some charitable conservation easements, you will want to maintain pertinent documentation related to the donation, particularly as it relates to how the appraised value was determined.

For more background on Qualified Conservation Contributions to charity, see the following additional information on that topic found in IRS Publication 526.