1982 East, LLC v Commissioner of Internal Revenue (aka Asser v Commissioner)

US Tax Court, T.C. Memo. 2011-84, April 12, 2011: Denies preservation easement tax deduction because local law already protects property and because mortgage subordination reserves insurance and condemnation proceeds priority to lender.

The taxpayer/petitioner donated a façade easement and “unused development rights” (UDRs) to Trust for Architectural Easements (formerly known as National Architectural Trust) on a townhouse [...]

The Iron Quarter, LLC, v Mims II

US Dist Ct, W.D. KY, Louisville Div., No. 3:10-CV-539-H, April 8, 2011: Allows neighboring property owner and historic preservation groups to intervene to challenge an agreement between the County and Iron Quarter to demolish landmark buildings.

Property owner Iron Quarter LLC (“Iron Quarter”) sought to demolish landmark buildings (“landmarks”) in Louisville. The County denied a demolition order. [...]

TEMPEL v COMMISSIONER OF INTERNAL REVENUE

US Tax Court, 136 T.C. No. 15, April 5, 2011: Holds transferable Colorado conservation easement tax credits are a capital asset, but the transaction costs to establish the easement are not basis of the asset, and asset holding period began only when the easement donation was complete and the credits were granted by the state.

The Petitioner, [...]

Boltar v Commissioner of Internal Revenue

US Tax Court, 136 T.C. No. 14, April 5, 2011: Holding that that the Tax Court judge has the same discretion as in a jury trial whether to receive evidence using standards of reliability and relevance, the Tax Court agreed with the IRS to entirely exclude taxpayer’s appraisal from trial record as “unreasonable, unreliable, and irrelevant [...]

Kaufman v. Commissioner Reconsideration (Kaufman II)

US Tax Court, 136 T.C. No. 13, April 4, 2011: On reconsideration, the US Tax Court affirms its previous decision saying that for a preservation easement to be eligible for a tax deduction, the holder of the easement must have an absolute right to a portion of proceeds from a sale after extinguishment of the easement. [...]

Virginia Historic Tax Credit Fund 2001 LP v Commissioner of Internal Revenue

US Court of Appeals, Fourth Circuit, Nos. 10-1333, 10-1334, 10-1336, March 29, 2011: Reverses the US Tax Court and holds that certain transactions between a partnership to market Virginia historic rehabilitation tax credits and its partners amounted to taxable sales for purposes of federal tax law.

The following are excerpts from the Miller & Chevalier Tax Appellate [...]

Schrimsher v. Commissioner of Internal Revenue

2011 TC Memo 71, March 28, 2011: Upholds IRS disallowance of façade easement tax deduction because the “Preservation and Conservation Easement Agreement” between the taxpayer and the donee did not satisfy the Internal Revenue Code requirement for a contemporaneous written acknowledgment of the gift from the donee — it did not state whether the donee provided [...]