A partnership conveyed a conservation easement to a charity. Under the terms of the deed a formula was included which would divide the proceeds from a judicially approved sale of the property between donor and donee, “in the event of unexpected changes that make it impossible for continued conservation of the land.” But the formula varied from what was required in the IRS regulations with regard to the easement being protected in perpetuity. As a result, the entire charitable deduction was denied. (Code §170; Conservation Easement).
Dr. John Connors, JD, CPA, LLM
Tax Educator’s Network, Inc.
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