Conservation Easement Not Protected in Perpetuity, Tax Court Says

May 13, 2020, 9:28 PM

The U.S. Tax Court upheld a recent decision in a high-profile Tennessee conservation easement case, finding that a company that sought an $8.7 million deduction for a South Carolina property donation did not satisfy requirements that it was “protected in perpetuity.”

Woodland Property Holdings, LLC acquired 980 acres of land in western South Carolina in 2012 and sought to donate that land to the Southeast Regional Land Conservancy. Recognizing that this deal could fall through, the deed stipulated that proceeds would be divided between parties, with the donee’s value remaining constant, determined by the fair market value at the ...

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