McLaughlin on Kaufman: Tax Court Protects Public Investment in Conservation Easements

Abstract:     
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, Q24

Accepted Paper Series