IRS Form 8283: How to Claim Your Conservation Easement Deduction

You donated a conservation easement. You have a qualified appraisal. Now you need to actually claim the deduction on your federal tax return. That means IRS Form 8283 - Noncash Charitable Contributions - and getting it wrong is one of the most common reasons the IRS denies conservation easement deductions.

Here is exactly what to file, which section to use, what to attach, and the mistakes that get people audited.

Which Section of Form 8283

Form 8283 has two sections. Conservation easements always use Section B (Appraisal Summary for deductions over $5,000). Section A is for smaller noncash donations and does not apply to conservation easements.

Section B requires:

A description of the donated property
The date of the contribution
The appraised fair market value
The method of valuation (always "before and after" for conservation easements)
The qualified appraiser's signature and credentials
The donee organization's (land trust's) acknowledgment signature

Both the appraiser and the land trust must sign Section B. If either signature is missing, the IRS will deny the deduction.

The Qualified Appraisal

The appraisal is the foundation of your deduction. The IRS has strict requirements:

Who can appraise: A "qualified appraiser" under IRC Section 170 must hold an appraisal designation from a recognized professional organization (ARA, MAI, ASA, or equivalent) and have demonstrated experience valuing conservation easements. Not just any real estate appraiser qualifies.

When to appraise: The appraisal must be conducted no earlier than 60 days before the donation date and no later than the due date (including extensions) of the tax return on which you first claim the deduction.

What the appraisal must include:

A complete "before and after" analysis - not a percentage reduction, but a full highest-and-best-use study for both scenarios
Description of the property's physical condition
The terms of the conservation easement
The qualifications of the appraiser
The method and basis of valuation
The specific property rights being restricted

What to attach to your return: For deductions over $500,000, you must attach the complete appraisal report to your tax return. For deductions between $5,000 and $500,000, the appraisal summary on Form 8283 Section B is sufficient, but keep the full report in your records.

The Land Trust Acknowledgment

The donee organization (land trust) must provide a contemporaneous written acknowledgment that includes:

The name of the organization
A description of the conservation easement
A statement that no goods or services were provided in exchange for the donation (or a description and good-faith estimate of any goods/services received)
The date of the donation

This acknowledgment is separate from the Form 8283 signature. You need both.

Filing Timeline

The deduction is claimed in the tax year the donation is completed - meaning the year the easement deed is recorded with the county. If you complete the donation in December 2026, you claim it on your 2026 return (filed in 2027).

If your deduction exceeds your AGI limit (50% for standard taxpayers, 100% for qualified farmers/ranchers), the excess carries forward for up to 15 additional years. Each carryforward year requires a new Form 8283 attachment referencing the original donation.

Common Filing Mistakes

These are the errors that trigger IRS scrutiny or outright denial:

1. Missing signatures on Form 8283

Both the qualified appraiser and the donee organization must sign Section B. The IRS treats missing signatures as a technical deficiency and will deny the deduction even if the underlying donation is legitimate.

2. Appraisal timing violation

If the appraisal is dated more than 60 days before the donation, it is disqualified. This catches landowners who start the appraisal process early and then experience delays in closing. If closing is delayed, you may need a supplemental appraisal or an updated opinion of value.

3. Inflated valuations

The IRS has dedicated enforcement resources for conservation easement appraisals. If your "before" value assumes unrealistic development potential (rezoning that hasn't been approved, subdivision plans that don't exist, density assumptions beyond what the market supports), expect a challenge.

The most defensible approach: hire an appraiser who has successfully defended conservation easement valuations in IRS audits and Tax Court. Their fee will be higher. It is worth it.

4. Failing to attach the appraisal for large deductions

For deductions over $500,000, you must physically attach the complete appraisal report to your tax return. An e-filed return with a $2 million deduction and no attached appraisal is an immediate red flag.

5. Not filing Form 8283 at all

Some taxpayers or their preparers claim the deduction on Schedule A without Form 8283. This is technically a failure to substantiate the donation and the IRS can disallow the entire deduction on procedural grounds, regardless of the merits.

Carryforward Filing

When you carry forward unused deductions to subsequent years, you report the carryforward amount on a new Form 8283 for each year. Reference the original donation date and the original appraised value. You do not need a new appraisal each year.

Keep meticulous records of:

The original Form 8283 and all attachments
The amount deducted in the donation year
The remaining carryforward balance for each subsequent year
Documentation of your AGI for each year (to calculate the applicable limit)

The conservation easement calculator can help you project the carryforward schedule based on your AGI.

Working with a Tax Professional

Conservation easement deductions are complex enough that working with a CPA or tax attorney who has specific experience with noncash charitable contributions is strongly recommended. General-practice tax preparers may not be familiar with the Section B requirements, the appraisal timing rules, or how to properly report carryforward deductions.

The cost of specialized tax preparation for a conservation easement deduction is typically $1,000-$3,000 per year - a small fraction of the deduction value and well worth the audit protection.

For more on the deduction mechanics, see our conservation easement tax deduction guide. To estimate your potential deduction, try the calculator.