Investors Sue IRS Over Nixed $93 Million Easement Deduction

A Florida investment firm urged the US Tax Court to review whether the IRS should have disallowed a $93 million conservation easement donation tax deduction, arguing that they properly relied on experts to determine the land’s value.

Two Oak Properties LLC petitioned the tax court after the IRS disallowed the easement donation on its 2018 tax return and determined a penalty of nearly $34 million. In its petition, Two Oak said it provided documentation to the IRS that its donation of land in central Florida should qualify for the tax deduction.

The IRS had said the firm didn’t do enough ...