Trying Times: Important Lessons to Be Learned from Recent Federal Tax Cases

Abstract

Since 2005, the courts have collectively issued more than 47 decisions involving challenges to deductions claimed under IRC § 170(h) with regard to conservation easement donations.This outline discusses the practical implications of recent court decisions for conservation easement donors and donees. The outline was prepared for a workshop of the same name at the Land Trust Alliance's national conference in Providence, Rhode Island, in September 2014. Presenters at the workshop were Nancy A. McLaughlin, Robert W. Swenson Professor of Law, University of Utah S.J. Quinney College of Law; Steve Small, Attorney at Law, Law Office of Stephen J. Small; Karin Gross, Supervisory Attorney, IRS Office of Chief Counsel in DC; and Marc Caine, Senior Counsel, IRS Office of Chief Counsel in NY.

Keywords: conservation easement, 170(h), restricted gift, merger, bankruptcy, extinguishment, swap, recordation, qualified appraisal, valuation

JEL Classification: L31, N50, Q15, Q24, R14