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
Federal Tax Deductions
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
First Circuit Decides Kaufman V, Rules Against Landowners in Easement Valuation Dispute
In an opinion dated Friday, April 24, 2015, the First Circuit Court of Appeals has ruled against Gordon and Lorna Kaufman in their long-running easement fight with the IRS. In its published opinion (which you can read here), the First Circuit held that the Kaufmans could properly be assessed a 40% penalty for claiming $220,800 in charitable deductions for the donation of a façade easement that was later shown to be valueless. Let’s walk through the Kaufman case together and discover how it might be relevant to those wishing to donate conservation easements in Virginia. Continue reading First Circuit Decides Kaufman V, Rules Against Landowners in Easement Valuation Dispute