Article on Conservation Easements

Nancy A. McLaughlin (Robert W. Swenson Professor of Law, University of Utah S.J. Quinney College of Law) recently published her article entitled, McLaughlin on Kaufman: Tax Court Protects Public Investment in Conservation Easements, 6074 Emerging Issues (2011). The abstract available on SSRN is below:

In two recent decisions, the Tax Court held that the conservation purpose of a conservation easement will be “protected in perpetuity” as required by IRC § 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.