Major Conservation Easement Tax Rules Upheld by Appeals Court

Longstanding Treasury Department rules that were used to block a Tennessee company’s land conservation tax deduction of nearly $10 million are valid under a law governing federal agency rulemaking, an appeals court held Monday.

The ruling from the U.S. Court of Appeals for the Sixth Circuit marked a win for the Internal Revenue Service in one of its major tax enforcement priority areas—conservation easement deductions. The deductions arise after property owners give away development rights in order to conserve land or buildings. Donors are able to claim tax breaks if the donation satisfies tax code Section 170(h)‘s requirements, including ...