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property at the time of the contribution. Sec. 1.170A-1(c)(1),
Income Tax Regs.3 That is no less the general rule if the
charitable contribution is of a partial interest in property,
sec. 1.170A-7(c), Income Tax Regs., including a perpetual
conservation restriction such as the easement. Sec. 1.170A-
14(h)(3), Income Tax Regs. The preferred way of determining fair
market value is by applying the marketplace standard found in the
regulations to the property contributed. See sec. 1.170A-
1(c)(2), Income Tax Regs. (“fair market value is the price at
which the property would change hands between a willing buyer and
a willing seller, neither being under any compulsion to buy or
sell and both having reasonable knowledge of relevant facts”).
In the absence of a well-established market for property of the
type contributed, however, the marketplace standard of the
regulations may be difficult to apply. See, e.g., Symington v.
Commissioner, 87 T.C. 892, 895 (1986) (“Unfortunately, since most
open-space easements are granted by deed of gift there is rarely
3 In this case, the contributed property (if any) is the
difference between the fair market value of the easement and the
amount realized from the sale. See supra sec. IV.A. A
determination of the fair market value of the contributed
property (if any), independent of an examination of the fair
market value of the easement and the amount realized from the
sale would be difficult at best. Therefore, we shall determine
the fair market value of the easement and derive the fair market
value of the contributed property (if any) therefrom.
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