No $15 Million Deduction For Donating Rights to Alter Building

April 14, 2020, 5:55 PM

A $15 million charitable tax deduction for donating the right to alter the character of a building’s facade was invalid because the donation agreement didn’t guarantee that the character would be protected forever, the Sixth Circuit ruled.

Hoffman Properties II LP had claimed the deduction after donating a conservation easement—where a property owner gives away the right to develop property in the future, allowing them to claim a tax break if it meets certain requirements. Hoffman made the donation to the American Association of Historic Preservation (AAHP), creating protections for the facade of a historic building in Cleveland ...

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