Charles H. Browning, Jr., and Patricia L. Browning - Page 19

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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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