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governmental conservation policy and yields a significant public
benefit (the open space requirement); or (4) preserves a
historically important land area or a certified historic
structure (the historic preservation requirement). Sec.
170(h)(4)(A); see also sec. 1.170A-14(d)(1), Income Tax Regs.
Secondly, the “exclusively for conservation purposes requirement”
may be met only if the conservation purpose is protected in
perpetuity. Sec. 170(h)(5)(A).
2. Discussion
a. Generally
Respondent agrees that the intended donee, Fairfax County,
is a qualified organization under section 170(h)(3). The parties
continue to dispute whether there was a qualified real property
interest and whether the contribution is exclusively for
conservation purposes. If petitioners are unsuccessful in
showing either that they contributed a qualified interest or that
a qualified interest was contributed exclusively for conservation
purposes, they will not be entitled to the claimed deduction. If
petitioners satisfy both of those two requirements, then we shall
decide the value of the conservation easement.
With respect to the third requirement,8 petitioners contend
only that they met the open space and historic preservation
8Whether the contribution is made exclusively for
conservation purposes.
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