109 T.C. No. 16
UNITED STATES TAX COURT
CHARLES H. BROWNING, JR., AND PATRICIA L. BROWNING, Petitioners
v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket Nos. 16336-94, 20287-95. Filed November 25, 1997.
H county has a program to preserve farmland by
purchasing development rights from landowners. Under
that program, Ps conveyed an easement to the county in
consideration of a cash downpayment and an installment
note. Ps claimed a charitable contribution on the
basis that they had made a “bargain sale” of the
easement to the county. The consideration received by
Ps from the county was consistent with consideration
paid by the county to other participating landowners
under the program. Relying on sec. 1.170A-14(h)(3)(i),
Income Tax Regs., R argues that evidence of
consideration paid by the county under the program is
determinative of the fair market value of the easement.
Held: Because Ps have shown that the market
created by the county under the program was populated
by sellers intending to make gifts to the county and
was not determinative of fair market value, Ps are
entitled to present evidence of the fair market value
of their land before and after the conveyance of the
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