Preservation Law Digest

Cohan v Commissioner of Internal Revenue

admin — Mon, 20 Feb 2012 21:18:29 +0000

US Tax Court, T.C. Memo. 2012-8, Jan. 10, 2012: A charitable organization’s contribution acknowledgment letter that omitted items of value the taxpayer received in consideration was not a valid acknowledgment letter, the taxpayer did not act reasonably in relying on the letter, and therefore the taxpayer could not take a deduction for the contribution.

A taxpayer-donor claiming [...]

Long Green Valley Ass’n v Bellevale Farms, Inc. Revised

admin — Thu, 16 Feb 2012 02:08:24 +0000

Maryland Court of Special Appeals, No. 0228, February 14, 2012: Revised decision holds the purchased non-perpetual agricultural preservation easement at issue does not create charitable trust in Maryland, but abutter has rebuttable presumption that it has standing to bring mandamus action regarding enforcement of the easement by a state entity.

The decision issued February 14, 2012, revises [...]

Rolfs v. Commissioner of Internal Revenue II

admin — Wed, 15 Feb 2012 01:18:22 +0000

US Court of Appeals, 7th Circuit, No. 11-2078, February 8, 2012: Upholds the Tax Court decision that value of house donated to fire department on condition it be destroyed did not exceed the fair market value of the benefit the taxpayer received in return by house’s destruction.

The opinion upholds the decision of the Tax Court in [...]

ESGAR CORPORATION v. COMMISSIONER OF INTERNAL REVENUE

admin — Mon, 13 Feb 2012 17:58:25 +0000

US Tax Court, 2012 TC Memo 35, February 6, 2012: Determines fair market value of conservation easement by analyzing highest and best use and comparable sales, rejecting taxpayers’ claim that highest and best use was other than the properties’ present use.

At issue was the value of property before donation of conservation easements donated as qualified conservation [...]

City of Jersey City v. Consolidated Rail Corporation

admin — Mon, 13 Feb 2012 15:58:45 +0000

U.S. Court of Appeals, Dist. of Columbia Circuit, No. 10-7135 February 3, 2012: Holds that City has standing in federal court to challenge Conrail sale of historic structure formerly used for rail purposes.

Conrail sold a six-block, half-mile long stone structure it owns “in the heart of Jersey City’s historic downtown” (Harsimus Embankment) to developers. The State [...]

KOWALCHIK v. BROHL

admin — Mon, 13 Feb 2012 15:10:28 +0000

Colo. Court of Appeals, Div. A, No. 11CA2634, February 2, 2012: Grants request for interlocutory appeal of four issues of law of first impression in Colorado regarding tax treatment of purchase of conservation easement tax credits. A later opinion will address the merits.

In the case at trial, the plaintiffs collectively donated fourteen conservation easements over two [...]

Montgomery Preservation, Inc. v Montgomery County Planning Board of Maryland-National Capital Park and Planning Commission

admin — Mon, 30 Jan 2012 15:45:44 +0000

Court of Appeals of Maryland, No. 36, September Term, 2011, Jan. 24, 2012: Holds that a county Planning Board’s recommendation to the county Council against including a certain building in the county’s Master Plan for Historic Preservation did not become a “final appealable administrative agency decision” suitable for judicial review on a mandamus action when the [...]

Carpenter v. Commissioner of Internal Revenue

admin — Fri, 06 Jan 2012 02:36:55 +0000

US Tax Court, T.C. Memo. 2012-1, January 3, 2012: Colorado conservation easement extinguishable by mutual consent of the parties does not guarantee protection in perpetuity under state law as required by Internal Revenue Code.

Petitioners (Carpenter) sought a federal qualified conservation contribution tax deduction for a conservation easement granted to a charitable nonprofit that the IRS agreed [...]

Long Green Valley Ass’n v Bellevale Farms, Inc.

admin — Sat, 03 Dec 2011 18:40:25 +0000

The Court’s opinion in this case was revised on February 14, 2012. A revised Digest post discussing the decision is [...]

IRS: Easement Audit Techniques Guide

admin — Mon, 28 Nov 2011 16:19:17 +0000

The Internal Revenue Service publishes a “Conservation Easement Audit Techniques Guide” online at http://www.irs.gov/businesses/small/article/0,,id=249135,00.html#_Toc223. The publication was last revised September 30, 2011, and last reviewed by the IRS November 22, 2011. The Guide begins with a table of contents in hypertext linked to the chapters of the Guide, reproduced below. In addition to summaries of the many requirements of [...]