Appraisals

Easement and fee land appraisals

Land trusts engage with appraisals when receiving a gift of land or easements, or when purchasing land or easements themselves. It’s important to recognize that appraisals of conservation easements are highly specialized. While the landowner is responsible for obtaining the appraisal, many land trusts take steps to assist a landowner in getting a competent appraisal. It’s important to remember that donations of land value must be supported by an appraisal, completed by a qualified appraiser, that explicitly indicates that it is being done for tax purposes. Timing of this appraisal is critical, as the date of value must be no more than 60 days before the date of the gift. It’s also important that a land trust obtains a copy of the landowner’s appraisal prior to signing the IRS Form 8283 so it is confident that a gift has been made and the property is accurately described.  

When a land trust is purchasing land or easements, it should obtain an appraisal (except in limited circumstances) to justify the price paid. Paying in excess of fair market value can leave a land trust vulnerable to charges of conferring impermissible private benefit or private inurement and threaten its charitable status.