McLaughlin on Kaufman: Tax Court Protects Public Investment in Conservation Easements
Emerging Issues, Vol. 6074, 2011
18 Pages Posted: 26 Nov 2011
Date Written: November 21, 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.
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: Suggested Citation