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 [...]

Trout Ranch LLC v Commissioner

T.C. Memo. 2010-283; No. 14374-08, December 27, 2010: Tax Court creates its own appraisal of the value of a conservation easement using the before-and-after method; considers evidence of lot sales after the date the easement was donated.

 

The taxpayer argued that only the comparable sales appraisal method could be used because data on sales of comparables conservation [...]

Evans v Commissioner of Internal Revenue

United States Tax Court, No. 8309-08, September 22, 2010: The TC upheld the IRS’ complete denial of a deduction for a historic façade easement but denied the IRS’ accuracy-related penalty.

The taxpayer offered appraisals by two different appraisers but the preparers of only one of the appraisals testified as witnesses. The TC thoroughly discredited the appraisal prepared [...]

Whitehouse Hotel v Commissioner of Internal Revenue (Whitehouse II)

United States Court of Appeals, Fifth Circuit, No. 09-60085, August 10, 2010: Decides several issue about the deductibility and appraisal of a façade easement’s affect on the value of a building owned in common with the building being protected, vacating the Tax Court’s 2008 decision and remanding for further proceedings.

Taxpayer Whitehouse (“W”) owned the contiguous Maison [...]