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section 6662(h)1 for gross valuation misstatement of income of
$171,072 for 1993 and $45,936 for 1994.
After concessions,2 the issues for decision are: (1)
Whether $1,080,000 was the fair market value of a conservation
easement (the MLR easement) granted by petitioner to the Montana
Land Reliance (MLR) in 1993. We hold it was $800,000. (2)
Whether $290,000 was the fair market value of an amendment to the
MLR easement granted by petitioner in 1994. We hold it was. (3)
Whether petitioner is liable for an accuracy-related penalty
under section 6662(h) in 1993 or 1994. We hold she is not.
FINDINGS OF FACT
The parties submitted this case partially stipulated. The
stipulation of facts and the attached exhibits are incorporated
herein by this reference. At the time the petition herein was
filed, petitioner resided in Atherton, California.
From September 15, 1992, until the present, petitioner has
been the fee-simple owner of an approximately 320-acre tract of
1Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the years in issue, and
all Rule references are to the Tax Court Rules of Practice and
Procedure.
2Respondent originally determined that the value of the
conservation easement granted by petitioner to the Montana Land
Reliance in 1993 was zero, and that the value of a modification
of this easement in 1994 was zero. However, respondent now
concedes that the value of the conservation easement in 1993 was
$275,000.
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