Nancy A. McLaughlin (Utah), McLaughlin on Kaufman: Tax Court Protects Public Investment in Conservation Easements, 2011 Emerging Issues 6074:
In two recent decisions [Kaufman v. Comm’r, 134 T.C. No. 9 (2010); Kaufman v. Comm’r, 136 T.C. No. 13 (2011)], the Tax Court held that the conservation purpose of a conservation easement will be “protected in perpetuity” as required by § 170(h) only if the holder is given an absolute right to a share of post-extinguishment proceeds. This short article discusses the import of this holding, as well as the court’s approach to penalties and the deductibility of required cash payments to the donee.
