View a list of Programs and Tools Which Could Provide a Tax Deduction to a Landowner
For the purpose of this website, tax deductions might include:
- Deduction of conservation expenses on agricultural land
- Wildlife Management Valuation property tax exemption
- Charity donation for donation of land to land trust
- Charity donation of development rights to land trust
- Charity donation from bargain sale of land to land trust
Programs and Tools Which Could Provide a Tax Deduction to a Landowner
Click on a program below to learn more
Conservation Expense Federal Tax Deduction - IRS Deductions for Conservation Expenses In general, farm landowners and tenants can deduct expenses related to soil or water conservation, farmland erosion prevention, or endangered species recovery from their federal taxes, where otherwise these would be considered capital expenses. The deduction for conservation expenses is capped at 25% of the gross income from farming. Conservation expenses can only be deducted by those in the business of farming for profit. See the IRS “Farmer’s Tax Guide” for details. Conservation practices must be consistent with an approved Natural Resources Conservation... Read More →
Forest Stewardship Program (FSP) - Texas A&M Forest Service (TFS) About the Forest Stewardship Program The Forest Stewardship Program, administered by Texas A&M Forest Service and their partner, USDA Forest Service, provides technical assistance to landowners who wish to sustainably manage their forested property. There is no cost to the landowner for assistance or forest plan preparation. More than 8,000 FSP plans have been created since FSP began in 1991, enrolling more than 1.4 million acres of Texas forests. Foresters help landowners tailor a management plan to their goals and unique forestland. This... Read More →
Forest Taxation Program - Texas A&M Forest Service (TFS) Texas A&M Forest Taxation Program was developed to assist forestland owners in navigating taxes associated with operation and stewardship of a healthy forest. In silviculture, property taxes, cost-share assistance, capital gains taxes, and land and conservation easement donations are complex legal arrangements that may have taxation implementations; and timberland operation and ownership is not always well understood by tax professionals. The Forest Taxation Program website contains guides to the Timberland Property Tax in Texas, information on tax incentives associated with timberland, tax valuation... Read More →
Property Tax Valuation for Wildlife Management - State of Texas and Local Central Appraisal Districts Wildlife Management Valuation of Your Property Under Texas Tax Code 1-d-1 (Sec. 23.51), property can continued to be appraised as open space land for tax purposes while being maintained for wildlife management use. Wildlife Management Valuation of a property allows a landowner to maintain and care for the land and wildlife with an ag-type exemption, without all the requirements of an agricultural tax exemption. This 1-d-1 open space exemption can be maintained without the livestock fencing, vetting, and reporting... Read More →
Purchase of Conservation Easements - Various Land Trust and Government Agencies Conservation easements often involve the donation of development rights of land. This donation is often used to obtain a tax deduction. However, in some cases, the development rights of land can be purchased by a willing land trust or government program for a one-time cash payment. Purchased conservation easements are also known as the purchase of development rights (PDRs). If there is funding available for the PDRs, the purchase price is often less than the value of the full value of the... Read More →
Tax Deduction via Bargain Sale - IRS A bargain sale is the sale of land or other assets to a charity, land trust, or other non-profit for less than fair market value. In general, the fair market value, less the sale price, can be deducted from your taxes as a charitable donation as long as the property has been held for at least one year by the landowner. In a single year, this deduction is limited to 30% of the donor’s adjusted gross income, but can be carried forward over five years. This can... Read More →
Tax Deduction via Donation of Conservation Easement - IRS What is a Conservation Easement? A conservation easement is a voluntary legal agreement between a property owner and a qualified entity (public agency or private conservation organization/non-profit), which will restrict the future land uses of a property to protect its natural and ecological qualities. Conservation easements can permanently protect land from development while the landowner continues to own the land. Conservation easements are designed with the unique characteristics of the land and land use goals of the landowner in mind. Conservation easements can protect land while still... Read More →
Tax Deduction via Donation of Land - IRS Real Estate Donation A landowner may be interested in gifting a property to a charity or land trust. When a charity or land trusts accepts a real estate donation, the landowner can deduct the fair market value of the land from his or her federal taxes. Depending on how long the landowner has held the property, deduction is capped at 30% (held for a year or more) or 50% (held for less than a year) of the adjusted gross income. Excess contributions can be carried forward for... Read More →
