2020 case roundup – How the IRS challenges conservation easement charitable contributions

Description

Abstract: Conservation easements can provide a useful vehicle for achieving both tax planning and charitable goals. But it’s not unusual for the IRS to question the validity of charitable contribution deductions based on the easements. In three 2020 cases, the IRS argued that deductions weren’t permissible because the easement deeds didn’t protect the conservation purposes in perpetuity, as required by federal tax law. This article summarizes the results. And a brief sidebar reviews the Tax Court evaluation of facade easements.