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

Emerging Issues, Vol. 6074, 2011

18 Pages Posted: 26 Nov 2011  

Nancy A. McLaughlin

University of Utah S.J. Quinney College of Law

Date Written: November 21, 2011

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.

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

Suggested Citation

McLaughlin, Nancy A., McLaughlin on Kaufman: Tax Court Protects Public Investment in Conservation Easements (November 21, 2011). Emerging Issues, Vol. 6074, 2011. Available at SSRN: https://ssrn.com/abstract=1964364

Nancy A. McLaughlin (Contact Author)

University of Utah S.J. Quinney College of Law ( email )

332 South 1400 East, Rm 101
Salt Lake City, UT 84112-0730
United States
801-581-5944 (Phone)
801-581-6897 (Fax)

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