Grassley Wyden Take On Sketchy Conservation Tax Shelters
The highest and best use is going to be something hypothetical. This is where things can get out of hand. The development to bring the property to its highest and best use is not something that actually has to be executed. So there can be a tendency to think big and assume away minor obstacles like zoning. There was one case where the proposed development didn’t even fit on the parcel. I mean – So what? It’s not like you were going to actually build it.
On top of the valuation issue, there are times when the donee organizations are a little sketchy and won’t really be able to enforce the easements. And sometimes the conservation or public benefit of the easement is altogether dubious. Sometimes easements are given on properties that are already so restricted that there is no real value to them. I compare those to me renouncing my superpowers.
Hobby Loss Claim Goes Down In Flames
The captain’s initial plan was to sell rides on the plane. (The Firefly had a crew of two, so I guess the passenger would get the navigator/weapons officer spot) Of course, that required making the 60% restored Firefly 100% flyable. That took eight years and 45,000 man-hours. Some of the tsoris involved is outlined in this story by John Sotham in Air&Space.
When the plane was ready for its intended use, basis had grown to $1.6 million which translated into annual depreciation deductions over $80,000. It turned out that taking up passengers who could fantasize about dropping bombs on the Tirpitz or Japanese submarines was not feasible. So Captain Eddie took to the air shows, where the plane did quite well, but to live in fame did not bring in enough revenue to cover expenses. Losses mounted up.
Follow Me
Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.