Donating property for a conservation easement is a way to preserve land for the future. It can also bring the donor hefty tax breaks, which is why the IRS closely scrutinizes such donations. To qualify for tax deductions, donations must meet specific reporting and disclosure requirements and a qualified appraisal must establish the donation’s value. One Georgia-based firm donated 64.7 acres of undeveloped land and claimed a related tax deduction for $16,745,000. The U.S. Tax Court disallowed the deduction, stating it was well over the actual value of $93,690. The court also added a 40% penalty for gross misstatement of value, a 20% accuracy penalty and other penalties. (TC Memo 2024-93)
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