Charles H. Browning, Jr., and Patricia L. Browning - Page 16

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          line with the amount that the county paid generally for                     
          development rights under the Program and, thus, represented the             
          fair market value of the easement.  Respondent relies on section            
          1.170A-14(h)(3)(i), Income Tax Regs., which prescribes a                    
          methodology for determining the fair market value of donated                
          easements of the type conveyed by petitioners to the county.                
          Respondent argues that there is a universe of sales of                      
          development rights to the county under the Program, that that               
          universe constitutes a substantial record of sales of comparable            
          development rights, and that there were no other sales of                   
          development rights in the county during 1990.  Relying on section           
          1.170A-14(h)(3)(i), Income Tax Regs., respondent denies the                 
          relevance of any appraisal evidence that would support any                  
          different (greater) fair market value.  Thus, by, in effect,                
          defining the fair market value of the property transferred by               
          what the county paid for it, respondent denies that petitioners             
          made a bargain sale to the county; denying that they made a                 
          bargain sale, respondent denies that they made a charitable                 
               Alternatively, respondent argues that the fair market value            
          of the easement is no greater than $367,000 and that the                    
          “valuable benefits” received by petitioners, including the                  
          $309,000 and the anticipated charitable contribution deductions,            

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