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governmental program), the fair market value of the
donated easement is based on the sales prices of such
comparable easements. If no substantial record of
market-place sales is available to use as a meaningful
or valid comparison, as a general rule (but not
necessarily in all cases) the fair market value of a
perpetual conservation restriction is equal to the
difference between the fair market value of the
property it encumbers before the granting of the
restriction and the fair market value of the encumbered
property after the granting of the restriction. * * *
III. Arguments of the Parties
Petitioners, relying principally on the testimony of their
experts, contend that the fair market value of the easement on
the conveyance date was $563,000.1 Petitioners argue that the
amount realized on the sale of the easement is $309,000, and,
therefore, the amount of the charitable contribution is $254,000.
Respondent argues that petitioners’ conveyance of the
easement to Howard County did not constitute a bargain sale
because the amount paid by Howard County to petitioners was in
1 Petitioners recognize that $563,000 is less than the
$598,500 (1) determined by Mr. Griffith in his appraisal as the
fair market value of the easement and (2) used by petitioners in
determining their claim of a $289,500 charitable contribution on
account of their sale of the easement to Howard County.
Petitioners ask that their return be “corrected to read * * *
$254,000” for the fair market value of the contributed portion of
the easement to Howard County. Because of the annual limitation
on the amount of the deduction that may be claimed by an
individual on account of charitable contributions, see sec.
170(b), petitioners’ requested correction does not affect the
deficiencies determined by respondent for the years in question.
We need deal no further with the consequence of petitioners’
request for a correction of their return.
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