Final Regs on Income Ordering Rules for Payments to Charitable Beneficiaries

For a trust to qualify for the charitable deduction, a charitable contribution must be made from gross income. [ See IRC § 642(c) .] IRC Section 642 requires tracing since the source of the charitable contribution must be gross income rather than principal. The provisions of the governing instrument...

Tax Court: Donation of Conservation Easement Upheld

The Tax Court affirmed the proposition that a conservation easement is still a Congressionally sanctioned charitable contribution under section 170 . Conservation easements and the corresponding charitable contribution deduction for the donation of such easements has been a topic of heightened scrutiny...

Tax Court: Side Letter Invalidates Façade Easement Donation

In a division opinion that reflects the increasingly technical aspects of defending conservation easement cases, the Tax Court has disallowed deductions for the contribution of cash and a façade easement to a qualified organization. The charitable contributions were disallowed because the donee...