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conservation easement. Boyett has valued farmland and ranches
for individual farmers and for companies. His experience is
primarily confined to the southeast.
Discussion
On their 1989 return, the Johnstons claimed a $960,000
charitable contribution deduction for the easement granted to the
Conservancy. The amount of the deduction was based upon an
appraisal which valued the property before the easement at
$2,035,00013 and after the easement at $1,075,000; the $960,000
difference between the before and after value represents the
value of the easement. Respondent determined that the easement
reduced petitioners' property value by $203,500,14 not $960,000
as claimed on their 1989 return. Accordingly, respondent reduced
petitioners' deduction for the value of the easement by $756,500;
the difference between the $960,000 claimed on their original
1989 return and the $203,500 allowed by respondent pursuant to
the notice of deficiency.
13 On brief, respondent concedes that $2,057,160 was the
property's value before the easement. This amount is $22,160
greater than petitioners' original valuation of $2,035,000.
14 In the notice of deficiency, respondent determined that the
easement reduced petitioners' property value by $203,500. On
brief, however, respondent contends that the easement reduced
petitioners' property value by $407,000, which is double the
amount originally allowed by respondent in the notice of
deficiency. Although, the record is silent as to why respondent
made this adjustment, we find this to be a concession in
petitioners' favor.
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