There can be significant tax benefits for donating your land, a conservation restriction, or selling at a price that is below market value to Greenbelt.

Many factors determine the type and amount of tax benefits you can qualify for. Greenbelt recommends that all landowners consult with an experienced attorney or qualified tax advisor before conserving your land.

Federal Income Tax Deduction

Under IRS regulations, the full fair market value of donated land or a conservation restriction is tax-deductible as a charitable contribution on your federal income taxes. Donors can deduct up to 50% of their Adjusted Gross Income per year, 100% of they are qualifying ranchers and farmers, and have a total of 16 years to use up the entire deduction. This may also help reduce capital gains taxes.

Massachusetts Conservation Land Tax Credit

Massachusetts offers a refundable State income tax credit of up to 50% of the fair market value of donated property, up to $75,000 – even if you live out of state or don’t have to pay state income tax. If your state income tax liability is less than $75,000, the credit is paid out to you in cash.

Reduce Estate Taxes

Any property transferred from your estate (at or before the time of death) to Greenbelt exempts the value of that property from state and federal estate taxes. By reducing your estate’s value, estate taxes will be lower, potentially enabling other property to remain in the family instead of being sold to pay estate taxes.

Property Tax Relief

If your conservation restriction substantially reduces the development potential of your property, your local assessor should revalue your property to take the restriction into account, thus lowering your property’s assessment.

Offset Capital Gains Taxes

Your charitable donation or sale can help you offset capital gains taxes.

Let our Land Conservation Staff Assist You Christopher LaPointe Director of Land Conservation (978) 768-7241 ext. 18 Vanessa Johnson Assistant Director of Land Conservation (978) 768-7241 ext. 16