The Second Circuit affirmed a Tax Court decision stating that a taxpayer was not eligible for a charitable deduction for a conservation easement.  The taxpayer had donated a facade conservation easement to the National Architecture Trust.  However, the Tax Court ruled that the taxpayer was not eligible for a charitable deduction because the easement did not negatively impact the value of the property.  The Second Circuit found that the Tax Court had used the correct legal standard and that their findings were supported by evidence and affirmed the Tax Court’s decision.

See Scheidelman v. Commissioner of Internal Revenue, 13-2650 (2d Cir. 2014).

Posted by David Song, Associate Editor, Wealth Strategies Journal