In a monumental ruling that is sure to send shock waves through the land conservation community, the Supreme Court of Virginia has concluded that ambiguous wording in conservation easements must be interpreted in favor of the free use of land and against limiting development on the easement property. The case in question is Wetlands America Trust, Inc. v. White Cloud Nine Ventures, L.P., 2016 Va. LEXIS 12, which you can read here. Let’s go through this important case step by step. Continue reading Supreme Court of Virginia Applies Strict Interpretation to Conservation Easements in White Cloud
Baseline Documentation Reports
The baseline documentation report, or BDR, is prepared before donating a conservation easement and documents the state of the property at the time of the donation. For example, the BDR will specify where any buildings are located, how large they are, and so forth. A BDR will typically consist of a narrative statement setting forth the pertinent characteristics of the property, with the bulk of the report being photographs and maps of the property.
A BDR must be prepared before donating a conservation easement in order for the easement to be eligible for any federal tax deductions. See Treasury Regulation § 1.170A–14(g)(5)(i) for more information regarding the tax requirements for BDRs.
For more information regarding BDRs, see the posts that follow.
Tax Court Denies Easement Deduction in Bosque Canyon Ranch
This fall has been fairly quiet when it comes to court rulings relating to conservation easements. Let me take advantage of this lull to go over a case that was decided in the U.S. Tax Court over the summer: Bosque Canyon Ranch, L.P. v. Commissioner, T.C. Memo 2015-130. (Read the full court opinion here.) The case dealt with two important issues that affect conservation easements, specifically boundary-line modifications and the baseline documentation requirement. Let’s go through these issues one by one. Continue reading Tax Court Denies Easement Deduction in Bosque Canyon Ranch
VOF Increases Conservation Easement Fees, Financial Aid
The Virginia Outdoors Foundation (VOF) has decided to begin imposing fees on all donations of conservation easements, effective January 1, 2016. This decision was made during VOF’s quarterly Board of Trustees meeting held on June 25, 2015. The official announcement of the decision was posted to VOF’s website in a blog post dated July 2, 2015. Let’s walk through the announcement and see how land preservation in Virginia might be affected. Continue reading VOF Increases Conservation Easement Fees, Financial Aid