- 8 - OPINION Issue 1. Whether $1,080,000 Was the Fair Market Value of the Easement in 1993 The principal issue for decision is the value of the MLR easement. The easement satisfies the requirements of a "qualified conservation contribution" provided by section 170(h). On her 1993 tax return, petitioner claimed the fair market value of the MLR easement was $1,080,000. A. Relevant Legal Considerations Section 1.170A-1(c)(1), Income Tax Regs., provides, in relevant part, that "If a charitable contribution is made in property other than money, the amount of the contribution is the fair market value of the property at the time of the contribution". 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." Sec. 1.170A-1(c)(2), Income Tax Regs. The question of value is a question of fact, necessarily arrived at after considering all the relevant factors. See Hamm v. Commissioner, 325 F.2d 934, 938 (8th Cir. 1963), affg. T.C. Memo. 1961-347. 7(...continued) density of one dwelling per 5 acres. However, open and resource land has a maximum density of one dwelling per 40 acres.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011