Gorra v. Comr., T.C. Memo. 2013-254

(petitioner donated qualified conservation easement to National Architectural Trust on petitioner's townhouse (façade easement on historic property); IRS challenged appraisal of property as not being a "qualified appraisal" because it did not contain state method of valuation (even though petitioner's appraiser testified that he used the "before and after" approach; IRS also argued that Pension Protection Act expanded requirements for qualified appraisal by requiring that appraisal follow "generally accepted appraisal standards"; IRS claimed easement had no value insomuch as it mirrored restrictions in local law; court did not accept IRS' argument and noted that an easement restriction does reduce value of the restricted property; court determined two percent reduction in value due to easement restriction which resulted in charitable deduction of $104,000 rather than $605,000 that petitioner claimed; petitioner liable for I.R.C. Sec. 6662 penalty).

CALT does not provide legal advice. Any information provided on this website is not intended to be a substitute for legal services from a competent professional. CALT's work is supported by fee-based seminars and generous private gifts. Any opinions, findings, conclusions or recommendations expressed in the material contained on this website do not necessarily reflect the views of Iowa State University.

RSS​ Facebook Twitter