901 South Broadway v Commissioner (Order Denying Motion For Partial Summary Judgment)

The Tax Court followed its decision in Palmolive Building Investors, LLC, finding the prior claims language in the easement and the subordinations to be fatally flawed.

The court, in an order on a motion for summary judgment and a subsequent order denying reconsideration, held that the conservation easement was void because it was unsigned and therefore in violation of the Statute of Frauds.

Whether a post-closing “correction” or “amendment” can cure a flawed termination proceeds provision has arisen in a handful of recent cases. In an order denying the IRS’ motion for summary judgment, the Tax Court declined to rule that the deed correction was ineffective as a matter of law.

In an unpublished order, the Tax Court denied the IRS’ motion for summary judgment reserving the proceeds issue for trial, found the deemed approval provision as not fatal because of the limitations, and rejected that the building area was “moveable.”

In a proceeds clause case with the improvement deduction language, the Tax Court denied the deductions in full, following Oakbrook Land Holdings LLC, v. Commissioner and Coal Property Holdings, LLC v. Commissioner. The Tax Court declined to consider the IRS' argument on the floating building areas.

The trial court granted summary judgment for the LLC and denied summary judgment to the Town and County. Following well-developed New York common law, the court ruled that the deed restriction did not include any language evidencing the requisite intent to run with the land.

The Tax Court denied the IRS’s summary judgment on whether the taxpayer retained the right to mine subsurface clay considering a prior release and the express prohibition on mining in the easement.

Lumpkin One Five Six LLC v. Commissioner - June 2020.pdf In a proceeds clause case with the improvement deduction language, the Tax Court denied the deductions in full, following Oakbrook Land Holdings LLC, v. Commissioner and Coal Property Holdings, LLC v. Commissioner. The Tax Court declined to consider the IRS' argument on the floating building areas.

The Tax Court denied the IRS motion for summary judgment concerning a prohibition on the extraction of subsurface minerals by a surface mining method.

In an unpublished order, the Tax Court denied summary judgment without prejudice, regarding a mineral rights reservation to use borrow pits and preserved the issue for trial.