Tax Court Decision Concerning Conservation Easements

Peter J. Reilly discusses a recent Tax Court holding concerning the termination of conservation easements.  See Kayln M. Carpenter, et al. v. Commissioner, TC Memo 2012-1.  He discusses how the IRS attacked the conservation easements based upon a clause in the contract instead of challenging the valuation of the easements.  The Tax Court ruled that mutual consent of the parties to extinguish the conservation easements would not guarantee that the property would continue to be protected.

See Peter J. Reilly, "Is Tax Court Decision End of Colorado Conservation Range War?" Forbes.com, Jan. 18, 2012.

Posted by William Alan Nelson II, Associate Editor, Wealth Strategies Journal.