James D. and Beverly H. Turner - Page 18

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               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.                                        





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