For income purposes donated land or conservation agreements are treated as if they are sold, which means that the capital gain will have to be calculated and declared on the landowner’s income tax return. For those landowners who do not have a capital gains exemption to apply, a much reduced tax rate is applied on capital gains when ecologically sensitive lands are donated.

MHHC has developed and analyzed a number of donated and purchased conservation agreement tax scenarios for the benefit of landowners and their accountants. To obtain a copy of the report please contact one of our field representatives. These tax scenarios are purely hypothetical and are provided as general information only.

Every situation is unique. Laws governing income tax and land transfers can be complicated. Whether you are thinking about donating land or a conservation agreement, much of it is best done with the advice of trusted legal and financial advisors.

If you intend to donate land to MHHC by will, you may wish to discuss it with your beneficiaries and your lawyer. Although you are not obliged to do so, you may wish to inform MHHC of your intentions.