James D. and Beverly H. Turner - Page 20

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          respondent’s determination for the penalty are, alternatively,              
          that petitioners did not make a qualified contribution or, if a             
          contribution was made, its value was substantially lower than the           
          amount reported on their return.                                            
          A.  The Burden of Proof                                                     
               Generally, the burden of proving or showing error in                   
          respondent’s determination is upon the taxpayer.  See Rule                  
          142(a).  The burden of proof may shift to respondent in certain             
          situations.  See sec. 7491(a).  Petitioners concede that they               
          bear the burden of showing their entitlement to a conservation              
          easement deduction.  Conversely, respondent concedes that he                
          bears the burden of production with respect to the section 6662             
          penalty.  See sec. 7491(c).                                                 
          B.  The Conservation Easement                                               
          1.  Background                                                              
               Section 170(a)(1) allows a deduction for a charitable                  
          contribution made during the taxable year.  Generally, section              
          170(f)(3) does not permit a deduction for a charitable gift of              
          property consisting of less than the donor’s entire interest in             
          that property.  An exception applies in the case of a “qualified            
          conservation contribution.”  See sec. 170(f)(3)(B)(iii).  A                 
          contribution of real property may constitute a qualified                    
          conservation contribution if:  (1) The real property is a                   
          “qualified real property interest”; (2) the donee is a “qualified           






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