McLaughlin on Kaufman: Tax Court Protects Public Investment in Conservation Easements
Nancy A. McLaughlin
University of Utah S.J. Quinney College of Law
November 21, 2011
Emerging Issues, Vol. 6074, 2011
In two recent decisions, the Tax Court held that the conservation purpose of a conservation easement will be "protected in perpetuity" as required by IRC § 170(h) only if the holder is given an absolute right to a share of post-extinguishment proceeds. This short article discusses the import of this holding, as well as the court's approach to penalties and the deductibility of required cash payments to the donee.
Number of Pages in PDF File: 18
Keywords: conservation easement, § 170(h), section 170(h), perpetuity, protected in perpetuity, enforceable in perpetuity, penalties, deductibility of easement donations, deductibility of required cash payments
JEL Classification: H20, H29, K11, K34, K32, L31, Q24Accepted Paper Series
Date posted: November 26, 2011
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