The U.S. Tax Court correctly held that an air space restriction tied to a conservation deal didn’t provide perpetual protection, the IRS said in a brief filed with the Sixth Circuit.
The case involves a conservation easement, a deal in which taxpayers can claim a deduction under tax code Section 170(h) for donating land or property to shield it from future development.
A partnership, Hoffman Properties II LP, had claimed a $15 million deduction in 2007 after donating an easement of a Cleveland, Ohio, building’s facade and a restriction on the building’s air space to the American Association of ...