The IRS has issued final regs that formally classify certain syndicated conservation easements as “listed transactions.” These transactions will be subject to reporting and disclosure rules designed to combat tax avoidance schemes. Indeed, syndicated conservation easements have been on the IRS’s annual Dirty Dozen list of tax schemes for many years. In these transactions, investors typically acquire an interest in a partnership that owns land. Then, they claim an inflated charitable contribution deduction based on a grossly overvalued appraisal. Going forward, material advisors and certain participants must report their involvement in these transactions using IRS Forms 8886 and 8918.
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