Partnership Disputes Denied $56 Million Louisiana Donation Claim

The IRS is unfairly blocking a tax deduction for a property owner’s efforts to preserve Louisiana land, it told the US Tax Court.

Georgia-based Augustine Clay Property LLC told the Tax Court that it acted reasonably when it claimed a $56 million charitable contribution tax deduction for a conservation easement on 207 acres of Louisiana land in 2019. The IRS erred in denying the deduction and didn’t do enough to explain why its deduction claim was disallowed, the partnership said in its Oct. 23 petition.

Augustine Clay said the property was suitable for economic use as “prime farmland” and its ...