The Assignment
Conservation Easement Appraisal Is a High-Stakes Discipline
The IRS has aggressively audited donated conservation easement transactions since 2016. A Qualified Appraisal that does not apply the before-and-after methodology correctly — or that uses inappropriate comparable sales, fails to account for the encumbering restrictions, or is performed by an appraiser without the requisite qualifications — will not survive an examination.
We apply the before-and-after methodology with documented comparable sales support for both the unencumbered and encumbered values. Our reports address the key IRS scrutiny points: highest and best use before the donation, the realistic development potential of the property, and the degree to which the easement restrictions affect marketable value.
William Martinez has the ASA designation and MRICS credentials, satisfying the Qualified Appraiser requirements under Treasury Regulation §1.170A-17.
What the Engagement Covers
- "Before" value — unencumbered fee simple, highest and best use analysis
- "After" value — encumbered fee, reflecting all restrictions in the easement deed
- Donation value (before minus after)
- Qualified Appraisal report format for Form 8283 attachment
- Comparable sales analysis — documented, verified, adjusted
- Highest and best use opinion — narrative and supportable
Property Types Served
- Coastal and waterfront properties
- Agricultural land and working ranches
- Scenic and open space parcels
- Historic properties and landmark buildings
- Forested acreage and wildlife habitat
- Urban infill with development restriction