In a lengthy written opinion released on December 9, 2015 under the name Atkinson v. Commissioner, the U.S. Tax Court denied the federal tax deductions claimed for two conservation easements donated on an operating golf course in coastal North Carolina. Specifically, the Tax Court denied these tax deductions on the grounds that the two easements did not have a legitimate conservation purpose. Let’s take a closer look at why these two golf course conservation easements failed to qualify for special tax treatment. Continue reading Tax Court Denies Deductions for Golf Course Conservation Easements in Atkinson
Conservation Easements
Enhanced Conservation Easement Tax Incentive Reinstated, Made Permanent
After more than eleven months of limbo, the enhanced conservation easement tax incentive was reinstated and made permanent as part of the Congressional budget deal on December 18, 2015. This federal tax incentive provides preferential treatment to donations of conservation easements that ordinary charitable donations do not receive. Let’s take a closer look at the history of the enhanced tax incentive and how the enhanced tax incentive benefits donors of conservation easements. Continue reading Enhanced Conservation Easement Tax Incentive Reinstated, Made Permanent
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
Ninth Circuit Denies Easement Deduction in Minnick Appeal
Earlier today, August 12, 2015, the Ninth Circuit Court of Appeals released its decision in Minnick v. Commissioner, a conservation easement case that had been appealed from the U.S. Tax Court to the Ninth Circuit. The verdict? The landowner’s tax deduction for the donation of the conservation easement was denied because the mortgage on the property had not been subordinated to the easement at the time of the donation. Let’s walk through the case together to get a better understanding of this ruling. You can read the full text of the Minnick opinion here. Continue reading Ninth Circuit Denies Easement Deduction in Minnick Appeal
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