Georgia Landowner’s Charitable Deduction Slashed by Tax Court

A Georgia company grossly overstated the value of its conservation easement when seeking a charitable tax deduction, the US Tax Court said in a bench ruling published Monday.

Judge Ronald L. Buch reduced the property’s valuation to $379,000 from Mize Farm LLC’s claimed deduction of $10.5 million, based on expert testimony and nearby comparable sales. He also upheld the government’s 40% penalty because the value claimed on the return exceeds 200% of the correct amount.

• Mize Farm donated a conservation easement on a roughly 30-acre parcel of undeveloped land in Demorest, Ga.
• Although the IRS initially denied the deduction entirely, ...