Failure to Attach Appraisal Fatal to Façade Easement Deduction in Gemperle

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

Tax Court Denies Deductions for Golf Course Conservation Easements in Atkinson

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

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