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Petitioners claimed a $342,781 charitable contribution
deduction6 on their 1999 Federal income tax return. The
deduction, $1,248,000, was based on a 40-percent7 share of the
conservation easement to Fairfax County which had been valued at
$3,120,000. The $3,120,000 value was based on the December 30,
1999, appraisal report prepared by Frank Petroff (Petroff) and
was referenced on petitioners’ Form 8283, Noncash Charitable
Contributions, attached to their return. The appraisal was
based, in part, on the February 10, 1999, letter signed by
Hyland. In addition, the appraisal was based on the erroneous
assumption that the entire Grist Mill property could have been
fully developed, including the area consisting of the floodplain.
On the “Donee Acknowledgment” part of Form 8283 “Fairfax County
Board of Supervisors” was shown as the intended charitable donee,
but the acknowledgment signature line was not executed and left
blank.
OPINION
Petitioners claimed a deduction for a contribution of a
qualified conservation easement under section 170(h)(1).
6The deduction was reduced by $905,219 due to an adjusted
gross income limitation.
7We note that petitioners claimed a deduction based upon a
40-percent share of FAC, although documentary evidence reflected
that petitioner was a 60-percent member of FAC. Due to the
outcome in this case, the difference between the ownership
percentage and claimed contribution deduction percentage need not
be reconciled or considered further.
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