IRS Conservation Easement Settlement Offer – Sweet Deal ?
Under the deal you are allowed your out of pocket meaning that the disallowance is $300,000. And that is taxed at 21% making the deficiency $63,000 for a total tab of $66,000 including the 5% penalty, Of course there will be interest on top of that. Nonetheless if back when you did the deal you made a wise investment with your $58,4000 in savings over and above the investment, you will actually have come out ahead for having invested in a really ridiculous deal.
Tax Court Rules On $187 Million In Charitable Deductions From $9.5 Million Purchase
It is rather intriguing that in the most recent batch of Tax Court decisions the notion that easement valuation is fundamentally different does not even come up as something that might be considered.
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.