Daily Tax Report ®

IRS Urges Appeals Court to Uphold Win on Tennessee Land Deal

June 30, 2020, 4:46 PM

The U.S. Tax Court was right to rule that a company couldn’t get a tax benefit for donating land development rights because the transaction didn’t ensure continuity in the donation’s conservation protections, the IRS said in a Monday court filing.

The agency’s brief was responding to TOT Property Holdings LLC’s appeal of a Tax Court finding that the company’s conservation easement donation wasn’t deductible because the conservation purpose wasn’t “protected in perpetuity,” as required by tax code Section 170(h). A conservation easement involves giving up development rights over property in order to conserve it.

The Tax Court...

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