Don’t lose your charitable tax deduction on use restrictions – It’s important to submit a qualified appraisal under IRS rules

Description

Abstract: When taxpayers contribute property to charitable institutions, they generally follow up by claiming a charitable deduction on their tax returns. But that deduction isn’t a given — the IRS has strict requirements. Many contributions, for example, require the donor to obtain, and possibly submit, a “qualified appraisal” of the donated property. Failure to do so can cost the deduction and possibly lead to steep penalties. This article summarizes a recent case and the law behind the charitable tax deduction. A sidebar discusses how a conservation easement can qualify for a deduction. Gemperle v. Commissioner, U.S. Tax Ct., No. 19599-12, January 4, 2016