IRS OKs Constructive Denial Clause in Conservation Easement
Author: Katherine E. David, J.D..
Source: Volume 19, Number 02, January/February 2020 , pp.14-14(1)
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Abstract:
In the recent case, Hoffman Properties II LP by Five M Acq. I, LLC, Tax Matters Partner v. Commissioner, the Sixth Circuit denied a charitable contribution deduction for a façade easement because the protections were not perpetual. Following the decision in Hoffman Properties, the Office of Chief Counsel issued a memorandum addressing a constructive denial provision and contradicting the 6th Circuit ruling. The memorandum contemplates an arrangement in which certain activities or uses are permitted with the easement holder’s approval.Keywords: Donating Conservation Easements; ILM 202002011
Affiliations:
1: Clark Hill PLC.