Nancy A. McLaughlin has made available her forthcoming article, “Conservation Easements and the Valuation Conundrum,” to be published in 19 Florida Tax Review __ (2016).
The Abstract is as follows:
For more than fifty years, taxpayers have been able to claim a federal charitable income tax deduction under Internal Revenue Code § 170(h) for the donation of a conservation easement or a façade easement. For just as long, the deduction has been subject to abuse, including valuation abuse. Dismayed by the expenditure of significant judicial and administrative resources to combat abuse in the easement donation context, the Treasury Department recently proposed reforms, including reforms to address valuation abuse. The reforms were proposed in somewhat of an analytical vacuum, however, because there has been no comprehensive analysis of the easement valuation case law. This article fills that void. It examines the easement valuation case law and discusses the most common methods by which taxpayers or, more precisely, their appraisers overvalue easements. It also proposes alternative reforms informed by the lessons learned from the case law. Concise summaries of the relevant facts and holdings of the cases are included in appendices.
Download full article at: Conservation Easements and the Valuation Conundrum by Nancy A. McLaughlin :: SSRN
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.