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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.
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Last modified: May 25, 2011