Tax Court Sees $215 Million More in Conservation Easement Suits

Four more conservation easements were filed at the US Tax Court this week, adding to a significant case load for the controversial tax deduction.

The petitions contest more than $215 million in tax deductions. In a conservation easement, a property owner donates an easement that encumbers a piece of property, preserving its natural state in exchange for a charitable contribution tax deduction.

The IRS frequently audits and disallows these for their potential to be tax shelters, especially for partnerships, leading to frequent litigation. Cases are often fact-intensive and hinge on how the land is valued.

The petitioners assert a number ...