Graev: Conditional Facade Easement

Wendy C. Gerzog

University of Baltimore - School of Law

September 30, 2013

Tax Notes, Vol. 140, No. 14, 2013

In Graev v. Commissioner, the Tax Court decided whether the taxpayers’ donations of a facade easement and cash contributions were conditional gifts and therefore disallowable as charitable deductions under the requirements of the regulations. The court reviewed the facts to determine whether the condition was allowed because it was “so remote as to be negligible.” The taxpayers argued that case law at the time of the donation allowed for a donation of between 10 and 15 percent of the value of the property, and that they had deducted a value constituting 11 percent of the property’s appraised value; that the example provided in Notice 2004-41 did not apply to the specific transaction at issue; that there was no possibility that the charity would return the property; that when the easement deed was recorded, the doctrine of merger extinguished the charity’s refund letter; and that the letter was a nullity under Commissioner v. Procter.

Number of Pages in PDF File: 4

Keywords: facade easement, charitable deduction, Graev, conditional gift, National Architectural Trust, Procter

JEL Classification: H20, H24, H29, K34, L3, L39, Q15, Q24, R52

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Date posted: October 1, 2013  

Suggested Citation

Gerzog, Wendy C., Graev: Conditional Facade Easement (September 30, 2013). Tax Notes, Vol. 140, No. 14, 2013. Available at SSRN: https://ssrn.com/abstract=2333211

Contact Information

Wendy C. Gerzog (Contact Author)
University of Baltimore - School of Law ( email )
1420 N. Charles Street
Baltimore, MD 21218
United States
410-837-4522 (Phone)
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