It is no secret that the IRS has been actively looking at syndicated conservation easements in recent years. While a number of courts have issued opinions regarding the requirements for a valid conservation easement, there is little to date regarding the validity of syndicated easement deals. However, with Notice 2017-10, the IRS made certain syndicated conservation easement deals “listed transactions,” and announced that it was concerned over the manner in which these syndications worked and were marketed.
When established correctly and for proper purposes, a conservation easement allows a taxpayer to take a deduction for donating an easement on real property to a qualified organization, while continuing to own and enjoy the property. However, not all conservation easements are created equal. As evidenced by both the Notice and House and Senate Bills, the government is skeptical of transactions in which a taxpayer quickly receives a charitable […]