Whitehouse Hotel LP Appeals Tax Court’s Valuation

Whitehouse Hotel LP is appealinga recent U.S. Tax Court valuation of a historic façade conservation easement,which Whitehouse granted to preserve the façade of the Maison Blanche buildingin New Orleans.

Whitehouse valued itsdonation at $7.5 million, but the Tax Court decided to adopt the much lower $1.8million valuation by the IRS because the hotel was not open.  This decision will impose a 40 percentpenalty, which Whitehouse seeks to avoid in its appeal to the U.S. Court of Appealsfor the Fifth Circuit.

See DailyTax Report, IRS: Facade ConservationEasement Valuation Improper if Hotel not Open, Bloomberg BNA, Aug. 21,2013.