A charitable contribution deduction will be permitted if an open space or scenic easement
is granted in perpetuity.
A popular form of conservation easement is the open space or scenic easement
, where the landowner agrees to set the land aside to preserve natural, scenic, historic, scientific and recreational areas for public enjoyment.
The contribution deduction passed through by the S corporation to the shareholders for the gift to the charitable organizations was measured by the property's fair market value (FMV), as burdened by the scenic easement
If the owner donates a scenic easement
on the property but retains the right to divide the property into 10 acre parcels and build one house on each parcel, no contribution deduction will be allowed because any building on the property would destroy the scenic view from the park.
In another example, Wisconsin's Great River Road scenic easement
program required landowners to apply for variances to modify easement terms.
Thompson has written several articles related to rural appraising and won The Appraisal Journal's 1986 Manuscript Competition with his article, "Busterback Ranch: Valuing Water Rights in A Scenic Easement
Protection of the Mississippi River corridor was required by "appropriate route selection, effective control and development, and scenic easement
Sixty acres of this second sale were donated to a qualified organization for a scenic easement
prior to the sale of the entire parcel.
That is, when the land possesses scenic or natural beauty, a charitable deduction of a scenic easement
in the property under Internal Revenue Code (IRC) Section 170 is possible.
Projects that may be considered include: pedestrian or bicycle facilities; provision of safety and educational activities for pedestrians and bicyclists, acquisition of scenic easements
and scenic or historic sites; scenic or historic highway programs; landscaping and other beautification; historic preservation; rehabilitation and operation of historic transportation buildings, structures or facilities - including historic railroad facilities and canals; preservation of abandoned railway corridors - including conversion for use as bicycle or pedestrian trails; archaeological planning and research.
The property rights effect, which was anticipated to be negative, translated into a discount of about 30%, a significant figure consistent with several tax court decisions on the value discounts associated with open space and scenic easements
Eligible projects include inventory, preservation, and enhancement of the qualities of byways; safety improvements; construction of bike and pedestrian facilities; and resource protection such as scenic easements
and byway marketing.