- 30 -
As to the first of the three requirements, an interest in
real property is a qualified real property interest if the
interest is the donor’s entire interest in that real property
(other than a qualified mineral interest), a remainder interest,
or a restriction granted in perpetuity on the use which may be
made of the real property. Sec. 170(h)(2). In the case of the
latter, i.e., a restriction granted in perpetuity on the use
which may be made of the real property, the regulations
interpreting that provision clarify that such a restriction must
be legally enforceable to limit any use of the real property that
is inconsistent with the conservation purpose of the
contribution. See sec. 1.170A-14(g)(1), Income Tax Regs. These
regulations note that this requirement may be met by recording
the restriction in the land records of the jurisdiction in which
the real property is located. Id.
As to the second of the three requirements, a contributee is
a qualified organization if it is described in section 170(h)(3).
The regulations interpreting this provision mandate that the
organization be committed to protecting the conservation purposes
of the contribution and have the resources necessary to enforce
the restrictions granted in perpetuity. Sec. 1.170A-14(c)(1),
Income Tax Regs.
As to the third of the three requirements, a contribution is
made exclusively for conservation purposes if it meets the tests
Page: Previous 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 NextLast modified: May 25, 2011