SWF Real Estate LLC v. Commissioner

Tax Court, T.C. Memo. 2015-63, April 2, 2015: Tax due on partnership’s easement tax credit allocation as disguised sale.

The prime issue in this case was how the IRS should treat a limited partnership transaction involving Virginia tax credits for the donation of a conservation easement, and the valuation for federal tax purposes of that donation. Also [...]

Markus v. Brohl

Colorado Court of Appeals, 3rd Div., No. 13CA1656, October 23, 2014: Colorado’s 4-year limitation on challenging a claimed conservation easement tax credit runs from when the credit is first claimed.

Colorado taxpayers may claim a state income tax credit, which may be carried forward for up to twenty years, for donating a qualifying conservation easement to a [...]

Historic Boardwalk Cert Denied

U.S. Supreme Court, No. 12-901, 5/28/13: Supreme Court lets Historic Boardwalk Third Circuit decision stands.

The U.S. Supreme Court denied certiorari to Historic Boardwalk Hall LLC, letting stand the Third Circuit Court of Appeals decision in Historic Boardwalk Hall, LLC v. Commissioner of Internal Revenue, US Third Circuit Court of Appeals, No. 11-1832, decided August 27, 2012. [...]

Historic Boardwalk Hall, LLC v. Commissioner of Internal Revenue

US Third Circuit Court of Appeals, No. 11-1832, August 27, 2012: Structure of transaction to transfer historic rehabilitation tax credits from a tax exempt entity to taxable entity resulted in taxable entity not being a true partner, therefore not eligible to claim credits.

The Internal Revenue Code allows a tax credit of 20% of the “qualified rehabilitation [...]

In Re Creekside Senior Apartments, LP

US Bankruptcy Appellate Panel, 6th Circuit, No. 11-8072, June 29, 2012: Tax credits and reductions in real estate taxes relevant in valuing real property for bankruptcy.

The Debtors in the bankruptcy case own several apartment properties that have the benefit of federal low-income housing tax credits. The lower bankruptcy court determined the fair market value of the [...]

KOWALCHIK v. BROHL (Brohl II)

Court of Appeals of Colorado, Division A, No. 11CA2634, March 15, 2012: Resolution of litigation regarding Colorado conservation easement tax credits between Dept. of Revenue and the original donor of the easement as tax matters representative is binding on transferees of the CE credits; transferees are not necessary parties to such disputes and need not be [...]

KOWALCHIK v. BROHL

Colo. Court of Appeals, Div. A, No. 11CA2634, February 2, 2012: Grants request for interlocutory appeal of four issues of law of first impression in Colorado regarding tax treatment of purchase of conservation easement tax credits. A later opinion will address the merits.

In the case at trial, the plaintiffs collectively donated fourteen conservation easements over two [...]

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, [...]

Massachusetts Historic Rehab Tax Credit Extended to 2017

The FY 2011 Massachusetts state budget amends the state’s Historic Rehabilitation Tax Credit, previously set to expire in 2011, to sunset 12/31/2017. According to the Massachusetts Historical Commission website, “Under the program a certified rehabilitation project on an income-producing property is eligible to receive up to 20% of the cost of certified rehabilitation expenditures in state [...]