A conservation easement donated to charity gives the donor a charitable contribution deduction. But to qualify, the easement must meet certain conditions, including that it be in perpetuity (forever). The ability to make changes in the property donation can kill a potential deduction. Fortunately, SECURE Act 2.0 spelled out safe harbor deed language for the extinguishment and boundary line adjustment clauses for a conservation easement and donors can use this to ensure their donations are qualified. However, deeds must reflect the acceptable language within a set time limit. The IRS specified that this must be done by July 24, 2023 (Notice 2023-30). Here’s what to do:
Debt secured by a principal residence or second home to the extent of the excess of fair market value over acquisition debt. An interest deduction is generally allowed for home equity debt up to $100,000 ($50,000 if married filing separately).