On June 23, 2020, the Tax Court issued a Memorandum Opinion in the case of Lumpkin HC LLC v. Commissioner (T.C. Memo. 2020-95). The primary issue before the court in Lumpkin HC LLC v. Commissioner was whether the IRS properly disallowed the charitable contribution deduction with respect to the donation of a conservation easement in full because the conservation purpose underlying the easements was not “protected in perpetuity” as required by IRC § 170(h)(5)(A), insofar as the charitable grantee was not absolutely entitled to a proportionate share of the proceeds in the event the property was sold following a judicial extinguishment of the easement. References in Lumpkin HC LLC v. Commissioner For a complete discussion, which was basically summarized and reprinted in this case, see Oakbrook Land Holdings, LLC v. Commissioner, 154 T.C. No. 10, *7 (May 12, 2020) and Oakbrook Land Holdings, LLC v. Commissioner, T.C. Memo. 2020-54 (May 12,…

On June 23, 2020, the Tax Court issued a Memorandum Opinion in the case of Lumpkin One Five Six LLC v. Commissioner (T.C. Memo. 2020-94). The primary issue before the court in Lumpkin One Five Six LLC v. Commissioner was whether the IRS properly disallowed the charitable contribution deduction with respect to the donation of a conservation easement in full because the conservation purpose underlying the easements was not “protected in perpetuity” as required by IRC § 170(h)(5)(A), insofar as the charitable grantee was not absolutely entitled to a proportionate share of the proceeds in the event the property was sold following a judicial extinguishment of the easement. Cases Discussed in Lumpkin One Five Six LLC v. Commissioner For a complete discussion, which was basically summarized and reprinted in this case, see Oakbrook Land Holdings, LLC v. Commissioner, 154 T.C. No. 10, *7 (May 12, 2020) and Oakbrook Land Holdings, LLC…