- 18 - Petitioners claimed a $342,781 charitable contribution deduction6 on their 1999 Federal income tax return. The deduction, $1,248,000, was based on a 40-percent7 share of the conservation easement to Fairfax County which had been valued at $3,120,000. The $3,120,000 value was based on the December 30, 1999, appraisal report prepared by Frank Petroff (Petroff) and was referenced on petitioners’ Form 8283, Noncash Charitable Contributions, attached to their return. The appraisal was based, in part, on the February 10, 1999, letter signed by Hyland. In addition, the appraisal was based on the erroneous assumption that the entire Grist Mill property could have been fully developed, including the area consisting of the floodplain. On the “Donee Acknowledgment” part of Form 8283 “Fairfax County Board of Supervisors” was shown as the intended charitable donee, but the acknowledgment signature line was not executed and left blank. OPINION Petitioners claimed a deduction for a contribution of a qualified conservation easement under section 170(h)(1). 6The deduction was reduced by $905,219 due to an adjusted gross income limitation. 7We note that petitioners claimed a deduction based upon a 40-percent share of FAC, although documentary evidence reflected that petitioner was a 60-percent member of FAC. Due to the outcome in this case, the difference between the ownership percentage and claimed contribution deduction percentage need not be reconciled or considered further.Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
Last modified: May 25, 2011