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LAND CONSERVATION

ESTATE TAX BENEFITS

The New Mexico Land Conservancy provides the following as an informational resource to assist you as you consider placing your land under a conservation easement. We cannot provide tax and legal advice, and urge you to consult with your own tax and legal advisors.

Even with current and future exemptions, estate tax rates remain the highest rates faced by the American taxpayer. Placing a conservation easement on a piece of land can significantly reduce the value of that property for estate tax purposes and may qualify the encumbered land for an additional partial exclusion from estate taxes.

Depending on the value of the property and the estate, this could mean the difference between the heirs having to sell the property to pay the estate taxes or keeping the property in the family. Heirs may even grant a conservation easement after the death of the landowner and still take advantage of the estate tax benefits.

In addition, if the easement qualifies under certain provisions of the IRS Code, then an additional 40% of the residual value of the property after the granting of an easement can be excluded from the value of the estate, up to a maximum exclusion of $500,000.

RESOURCES:

TAX BENEFITS

Learn more about conservation easements

Introduction

Federal Tax Benefits

NM State Tax Benefits

Estate Tax Benefits

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