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There are several benefits to an outright donation
of land:
(1) it is a simple transaction,
(2) it releases the landowner
from responsibility for managing the land,
(3) it may provide substantial
income tax deductions and estate tax benefits and,
(4) if the land
has conservation value, it will be permanently protected.
The tax benefits of such generosity can be considerable
if the land has appreciated since first acquired. A donation of
land to a land trust or government agency allows a landowner to
claim an income tax deduction equal to current full-market value.
If sold on the open market, that same land would incur capital gains
taxes on the appreciation. In addition, when land is donated, future
estate taxes may be reduced since a donation removes the land's
value from an estate.
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