Land Deals Continue to Bring Tax Perks Despite IRS Crackdown (1)

Tax deductions tied to land-deal donations continued to grow, despite increased government scrutiny over the last several years.

Deductions tied to syndicated conservation easements increased about 53% from tax year 2016 to tax year 2018, according to IRS figures released Monday by the Senate Finance Committee. The charitable deductions crossed the $9 billion mark in tax year 2018, according to the data, which fits into the tax-writing panel’s probe into potential abuses.

The IRS flagged syndicated conservation easements, in which promoters solicit multiple investors to buy interests in property that is then donated for a tax deduction, as ...