Trying Times: Important Lessons to be Learned from Federal Tax Cases Involving Conservation Easement Donations
Texas Tech University School of Law Estate Planning & Community Property Law Journal, March 3, 2017
162 Pages Posted: 13 Jul 2016 Last revised: 24 Jan 2018
Date Written: October 20, 2016
Since 2005, the courts have collectively issued more than 80 opinions involving challenges to deductions claimed under IRC § 170(h) with regard to conservation and facade easement donations. This outline provides a brief history of developments in the deduction context, discusses the practical implications of the recent court decisions, and offers advice on how to file a tax return package to minimize the risk of audit. It also briefly notes various other important issues, such as the IRS's focus on valuation and syndicated deals, quid pro quo, and reserved development rights.
Keywords: conservation easement, 170(h), 8283, qualified appraisal, qualified appraiser, restricted gift, merger, bankruptcy, extinguishment, swap, recordation, valuation, syndication
JEL Classification: L31, N50, Q15, Q24, R14
Suggested Citation: Suggested Citation