Colorado Conservation Easements

I have noticed when I'm working with buyers looking at land or ranches many times the subject of conservation easements comes up. Often they haven't a clue what a conservation is, what they are used for or what the benefits are for granting one. I have written a short primer below to help bring things into focus.

A conservation easement is a written instrument typically in the form of a deed that limits land use. When recorded in the public records and accepted, the deed conveys valuable property rights to a charitable organization-most often a land trust.

Agricultural conservation easements limit the land owners use of the property for farming and ranching uses and limits construction except for buildings used for agricultural purposes or homes for the rancher, his family and employees.

The easement also prohibits removal of minerals and other natural resources if that removal adversely affects the land's conservation use.

After granting the easement the rancher or land owner still remains the "fee simple owner" reserving the right to operate and manage the property consistent with sound management practices. The rancher can also leave the ranch land to his heirs. By granting a qualifying conservation easement the rancher receives an immediate federal and state income tax benefit. The amount of the benefit is supported by a written appraisal report. The value described in the appraisal is the difference between the lands value before the restriction and the lands value after the restriction. the difference is the value given away to the Charity. 

The state of Colorado also allows land owners to sell their tax benefits to other Colorado tax payers if the land owner doesn't need the benefits.

For more information on Colorado water law and Colorado mineral rights see my website www.LaVetaForSale.com.

• La Veta Colorado Real Estate

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