In Uncategorized on 10/17/2022 at 15:30

I thought that the above assemblage was worthless four years back, when I wrote my blogpost “Not Endangered, Except the Benderdinker,” 9/10/18. But 11 Cir jumped all over Judge Pugh two years later, deciding the golf course was no impediment to a telephone-numbered-bonanza courtesy of us taxpayers; see my blogpost “A Great Golf Fixed,” 5/15/20.

So now that the conservationist defense has been flattened, Judge Pugh has to referee the battle of the experts in Champions Retreat Golf Founders, LLC, Riverwood Land, LLC, Tax Matters Partner, T. C. Memo. 2022-106, filed 10/17/22.

No wonder IRS hates those valuation trials.

Those amongst ye who get your kicks from valuation scrambles can read Judge Pugh’s 43 (count ’em, 43) pages of slaloms-and-moguls through the dueling appraisers’ blather. IRS’ expert comes off much the worse, as the Champions only need retreat from $10 million in writeoffs to $7.8.

“While we agree with respondent that Mr. C’s valuation of the easement was too high, we reject Mr. P’s conclusion that the value of the easement was de minimis because its grant had no adverse effect on the fair market value of the property. Not only did the easement document prohibit further subdivision of the property, but it also restricted future construction of additional buildings and other structures on the property. Thus, even assuming that in late [year of inception] there was no demand for a 210-lot subdivision, we are hard pressed to imagine that a prospective purchaser would not have considered easement restrictions material in determining the purchase price.

“On the basis of the record before us, giving due consideration to our observation at trial of the fact witnesses and the experts, we conclude that the fair market value of the easement in [year of inception] was $7,834,091.” T. C. Memo. 2022-106, at pp. 40-41. (Table omitted).

A Taishoff “Good Job, First Class” goes to the Champions’ Choice,  Vivian D. (“Golden”) Hoard, Esq.


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