Favorable conservation easement bill passes: Rules for deductions extended

Time For Legal Services

We have decided that our fearless leader, David Wooldridge, is much like the biblical character Joseph, who had a dream about something happening and then it occurred. Thankfully, David’s prediction from his dream had to do with the tax extender bill that passed the Senate Tuesday night and nothing to do with droughts. That allRead More

Correction of previous conservation easement article in The Preserver

Green tick sign icon 3d

This morning’s article “Favorable conservation easement deduction rules extended for one year” has an error. We made a mistake and jumped the gun. While we pride ourselves in being as perfect as possible, sometimes we cannot even preserve our perfection.  We are hopeful that the tax extender’s legislation will pass soon and we will be sureRead More

Favorable conservation easement deduction rules extended for one year

Irs Tax Code

Information in this blog has since been corrected. View the most recent updates here. The present rules for deductions for conservation easements are being extended retroactively for this calendar year (2014 only) under the spending bill (H.R. 5771) passed by Congress on December 13.  President Obama is expected to sign the legislation.  These rules includeRead More

Façade easement deduction denied where taxpayer promised to grant easements in exchange for assistance in seeking zoning variances from local planning board

unbalance coins

In Seventeen Seventy Sherman Street v. Comm’r (T.C. Memo 2014-124), the Tax Court held that an understanding between the taxpayer and a development company under which the taxpayer would grant certain conservation easements if the development company assisted in obtaining variances constituted a quid pro quo, resulting in a complete loss of the deduction forRead More

Tax Court determines donors of façade easement are entitled to limited deduction; Appraisal and tax return “substantially complied” with Treasury Regulations

Dollar sign and wooden hammer.

In Zarlengo, et al v. Commissioner (T.C. Memo. 2014-161) (Vasquez, J.), the Tax Court issued a limited “win” for the taxpayer, holding that substantial compliance with the substantiation regulations was sufficient to support the taxpayer’s claim for a façade easement donation.  The Tax Court did, however, disallow the charitable deductions claimed in the year theRead More

Fifth Circuit overturns Tax Court’s imposition of gross valuation misstatement penalty in conservation easement case but leaves Tax Court’s highest and best use determination undisturbed

Legal concept

The ongoing Whitehouse saga reaches what is likely to be its final resting place following the second decision by the Fifth Circuit (Whitehouse IV) upholding the Tax Court’s valuation finding on remand (Whitehouse III), but vacating the Tax Court’s decision to impose gross valuation misstatement penalties due to lack of reasonable cause.  While expressing sympathyRead More