Savannah Shoals Conservation Easement: Recovery Options For Investors

Investors who suffered losses in the Savannah Shoals conservation easement may have recovery options. Carlson Law is investigating potential claims in connection with the investment, a syndicated conservation easement whose $23 million tax deduction has been rejected by the IRS, the US Tax Court, and a federal appeals court.

In 2017, Savannah Shoals, LLC donated a conservation easement over 103 acres of vacant land in Hart County, Georgia, and claimed a $23 million charitable deduction, according to a July 2026 report by Thomson Reuters. According to that report, the easement’s valuation stemmed from “the assertion that the property’s ‘highest and best use’ before the easement was as an aggregate quarry.” The IRS found that this as not a legitimate deduction and applied a “gross valuation misstatement penalty” of 40 percent.

When the taxpayer disputed the IRS’s finding, the US Tax Court found in favor of the IRS. Specifically, it determined that “the proposed quarry was not the highest and best use of the property because it was not a viable use.” As a result, it assessed the pre-easement property value as $580,000 and the post-easement value as $100,000, meaning that the proper deduction totaled $480,000. Savannah Shoals appealed the finding, and the 11th Circuit US Court of Appeals again affirmed the IRS’s findings—both the valuation and the penalty of 40 percent.

Interests in the conservation easement were sold to investors through a private placement offering. According to a Form D filed with the Securities and Exchange Commission, Savannah Shoals Investments, LLC raised $4,254,126 from 52 investors beginning in December 2017, relying on a Regulation D exemption from registration. The filing names Atlanta-based broker-dealer The Strategic Financial Alliance (CRD# 126514), as the recipient of sales compensation. This compensation includes commissions of 7% of the offering, as well as “a non-accountable marketing allowance of 1.5% of offering amount and a due diligence allowance of 1.5% of offering amount.”

According to ProPublica, the term “conservation easement” traditionally denotes a legal restriction placed by a landowner on a property with the goal of keeping it permanently undeveloped. In theory, this benefits the public by creating protected open land, while the landowner receives a charitable deduction come tax time. The term syndicated conservation easement describes cases when a promoter purchases undeveloped land, commissions an appraisal that far exceeds what they paid, and then sells interests in the property to investors. Those investors typically receive tax deductions for each dollar they invest in the easement.

The risk of these inflated appraisals is that they leave investors with write-offs that the IRS does not actually permit. That’s why the IRS has described syndicated conservation easement schemes as abusive and added them to its “dirty dozen” list of tax scams. Brokers and broker-dealers who sell syndicated conservation easements may be liable for damages.

Carlson Law represents investors throughout the United States in claims against financial advisors and investment firms. If you or a loved one have suffered losses on the Savannah Shoals conservation easement or other syndicated conservation easements, please call us at 888-976-6111 or complete our contact form for a free and confidential consultation.