Oakbrook Land Holdings LLC, v. Commissioner__full tax court
About This Legal Opinion
Investors purchased 143 acres on White Oak Mountain near Chattanooga, Tennessee, for $1.7 million in December 2007. Oakbrook granted a conservation easement on 106 acres a year later and claimed a $9,545,000 value for the easement — a 700% appreciation in value.
Membership Required
This resource is a Land Trust Alliance member benefit for the staff, board and volunteers of land trust and affiliate member organizations, and Alliance donors at the Protector level.
Oakbrook Land Holdings LLC, v. Commissioner
Investors purchased 143 acres on White Oak Mountain near Chattanooga, Tennessee, for $1.7 million in December 2007. Oakbrook granted a conservation easement on 106 acres a year later and claimed a $9,545,000 value for the easement — a 700% appreciation in value.
Oakbrook Land Holdings LLC, v. Commissioner__memo opinion
Investors purchased 143 acres on White Oak Mountain near Chattanooga, Tennessee, for $1.7 million in December 2007. Oakbrook granted a conservation easement on 106 acres a year later and claimed a $9,545,000 value for the easement — a 700% appreciation in value.
TOT Property Holdings, LLC v. Commissioner
In 2005, George Dixson purchased 652 acres of undeveloped land for $486,000 that was later transferred into the TOT Property Holdings, LLC (LLC). In December 2013, an investor purchased 99% of LLC shares for $1,039,000, then claimed a charitable deduction of $6.9 million on a conservation easement.
Plateau Holdings, LLC v. Commissioner
In December 2012, an investor acquired a 99% indirect ownership interest in 2,444 acres for $5.8 million. After donating conservation easements on all but 90 acres, a charitable deduction of $25.5 million was claimed based on before/after appraisals of $29.3 million and $3.8 million. IRS challenged.
Lumpkin HC, LLC v. Commissioner
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.
United States v. 1.57 Acres of Land
The court found that the conservation easement had more than zero value.
Sells v. Commissioner
In 1999, Steven Moses bought 398 acres of land in Calhoun County for $2.4 million. He and others formed an LLC to buy the 236 acres and then donate a conservation easement on it to Chattowah Open Land Trust in Dec. 2003. The IRS challenged both the easement deduction and the timber value deduction.
Railroad Holdings, LLC v. Commissioner
In 2012, Railroad Holdings LLC granted conservation easement on 452-acre parcel to the SE Regional Land Conservancy and claimed a $16 million charitable contribution deduction. The easement contained a termination proceeds provision that differed from the language of Reg. § 1.170A-14(g)(6)(ii).
Oakhill Woods, LLC v. Commissioner
In 2007, HRH Investments, LLC (HRH) purchased 1,895 acres of undeveloped forest land in Georgia at approximately $2,500 per acre. HRH conveyed land parcels to various LLCs, one of which claimed a $7,949,000 charitable deduction ($20,975/acre) — 10 times the per-acre value of the entire property.
Strasburg v. Commission
The Tax Court reduced the value of a conservation easement on a 320 acre parcel on the upper Boulder River in Montana from 55% to 44% of the value of the property. This is the first case approving a deduction for an amendment to a conservation easement.