Easements on mortgaged properties – Appeals court paves way for charitable deduction
Abstract: Savvy property owners are always looking for ways to reduce their income taxes. Now, thanks to a ruling by the U.S. Court of Appeals for the First Circuit, owners may be able to claim a deduction for donating conservation easements on their properties even if those easements are subject to a mortgage. This article discusses the “extinguishment provision” that was at the heart of the dispute in this case. Kaufman v. Commissioner (1st Cir. 2012).