In Uncategorized on 07/20/2017 at 15:54

Part Deux, Or, The Swap Meet

Once again the match-and-mixmasters are at it, and Judge Morrison is looking for enlightenment, in Salt Point Timber, LLC, John B. Hood, Tax Matters Partner, Docket No. 18057-14, filed 7/20/17.

I don’t know if the TMP is related to the celebrated General and namesake of the Killeen fortification, but he’s in a battle with IRS over the Reg. section 1.170A-14(c)(2), transfer-by-donee.

The Salties donate easement to a concededly qualified organization for preservation purposes. So far, so good.

Here’s what’s troubling Judge Morrison: “Part 6.22 of the easement provides that if (1) any of the land protected by the easement is transferred to the owner of adjacent land, (2) the adjacent land is encumbered by a comparable conservation easement, and (3) the owner of the adjacent land and holder of the adjacent easement agree to modify the easement on the adjacent property to encumber the transferred property, then the conservation easement will be amended by the landowner and the Berkeley land trust to release the transferred property from the conservation easement.” Order, at p. 2.

Sound vaguely familiar? If not, see my blogpost “A Thing of Beauty – Accept No Substitutes,” 1/28/13. And if it does, read my blogpost anyway.

Here’s Judge Morrison’s exam questions for the Salties and IRS, who are fighting about perpetuity.

By the terms of the aforesaid Part 6.22, must the transferor-donee insist that the conservation purpose be maintained by the incoming transferee-donee? And if not, what happens to deductibility? Cite appropriate law and regulations.

Must the donee-transferee be an eligible donee, or just a qualified organization? What difference does it make? Cite law and regulations, and maybe check out the case I discuss in my above-cited blogpost. A full-dress T. C., by the way.

Exam papers due by 9/18/17, and can criticize Judge Morrison’s approach and even object to facts as stated in this order.

Cain’t hardly wait.


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