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they evince an intent to accept this Conservation
Easement: (a) The Nature Conservancy, (b) the Michigan
department of Natural Resources, or (c) any other
appropriate organization which qualifies under Section
170(h)(3) of the Code, has conservation purposes, and
is qualified to accept and hold this Conservation
Easement either voluntarily or through an award of such
right by a court of competent jurisdiction under the
doctrine of cy pres.
Deed 1 does not restrict petitioners’ right to develop any part
of the property not covered by conservation easement 1.
Petitioners obtained from Frame an appraisal of conservation
easement 1 and attached to their 1992 return a letter from Frame
stating that he had appraised conservation easement 1 at a fair
market value of $99,000. Frame stated in the letter that he had
estimated that the fair market value of encumbered shoreline 1
was $249,000 before conservation easement 1 was imposed, that the
fair market value of encumbered shoreline 1 was $99,500 after
conservation easement 1 was imposed, and that conservation
easement 1 enhanced by $50,500 the fair market value of the
portion of the property not covered by conservation easement 1.
Frame concluded in the letter that these numbers resulted in the
claimed $99,000 fair market value for conservation easement 1
($249,000 - ($99,500 + $50,500) = $99,000).
Petitioners claimed on their 1992 return that they had made
total charitable contributions of $108,957, consisting of a
$99,000 noncash contribution of conservation easement 1 and cash
contributions of $9,957. Petitioners deducted on their 1992
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