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
Provisions in conservation easements that permit boundary-line adjustments with adjoining properties are strictly scrutinized by the IRS. If not properly limited, such provisions will be found to violate the perpetuity requirement, leading to the denial of any tax benefits. For more information regarding boundary-line adjustments, see the posts that follow.