The IRS has now officially modified Notice 2017-10. Notice 2017-10, which was released on December 23, 2016, had the primary purpose of designating certain syndicated conservation easement transactions as being “listed transactions.” This designation retroactively imposed additional reporting requirements on landowners and others who participated in these syndicated conservation easement transactions.
Late yesterday afternoon, however, the IRS released Notice 2017-29. Notice 2017-29 amended Notice 2017-10 in two important ways. Continue reading IRS Amends Notice 2017-10 Relating to Syndicated Partnerships
Earlier today, December 22, 2016, the Eleventh Circuit Court of Appeals ruled that the IRS may proceed in its investigation into allegedly overvalued conservation easement appraisals prepared by a Georgia appraiser. Specifically, the appraiser will be required to provide the IRS with his client lists and other information from his files. Continue reading Clower: IRS Investigation Into Abusive Appraisals May Proceed
In a split decision released on November 30, 2016, the U.S. Tax Court has ruled against Lawrence and Lorna Graev’s latest legal challenge against the IRS. Specifically, the Tax Court held that the Graevs could properly be assessed a 20% penalty for substantial underpayment of tax. This was in connection with the Graevs’ failed attempt to claim a deduction for the façade easement that they had donated to the National Architectural Trust in 2004. The Tax Court had previously denied this charitable deduction in a 2013 decision—the infamous “side letter” case. Continue reading Graev II: Tax Court Upholds 20% Penalty in “Side Letter” Case
On November 24, 2015, the Virginia Department of Taxation released a ruling (P.D. 15-215) holding that Virginia localities are not eligible to claim the land preservation tax credit (LPTC). The term “locality” includes counties, cities, and towns, as defined in Va. Code § 15.2-102. Let’s take a closer look at this ruling. Continue reading No Land Preservation Tax Credit for Virginia Localities
On January 4, 2016, the U.S. Tax Court released an opinion denying the tax deduction for the façade easement at issue in Gemperle v. Commissioner, T.C. Memo. 2016-1. This tax deduction was denied mainly because the landowners did not attach the required appraisal to their federal tax return. Let’s take a closer look at this case. Continue reading Failure to Attach Appraisal Fatal to Façade Easement Deduction in Gemperle