Basis Caps Conservation Easement Deduction, Appeals Court Rules

A land partnership’s adjusted basis in its donated conservation easement limits the size of its available tax deduction for charitably donating that easement, a federal appeals court said Friday.

Glade Creek isn’t entitled to a deduction beyond its adjusted basis in the donated easement, the US Court of Appeals for the Eleventh Circuit said, rejecting its claim it was entitled to deduct the full fair market value of the easement, beyond its adjusted basis under IRC Section 170(e).

That argument is new in the appeal and the court refused to hear it, saying the company fortified its challenge to ...