The Fifth Circuit affirmed the Tax Court's determination of the value of a facade easement
, finding that the Tax Court had properly followed its instructions on remand.
2013-224 (Friedberg II) in which a faulty appraisal for a facade easement
was still found to be a "qualified appraisal" for charitable deduction purposes was the subject of a recent Accounting Today article written by Los Angeles tax attorney Bruce Givner of Givner & Kaye.
were held to investigate facade easement
The court in Wall repeatedly relied on Kaufman, in which the Tax Court held that the taxpayers were not entitled to the charitable contribution deduction because the facade easement
in that case did not meet the Sec.
The survey revealed overwhelmingly that buyers do not consider a facade easement
to be a detriment.
In fact, for many years, the Internal Revenue Service seemed to endorse this notion of a safe harbor by stating that "Internal Revenue Service engineers have concluded that the proper valuation of a facade easement
should range from approximately 10% to 15% of the value of the property.
Since January, the Trust has facilitated nearly 30 applications for facade easement
donations in Baltimore, enabling property owners to benefit from the Historic Tax Incentive Program and ultimately accelerating voluntary preservation efforts throughout the area.
A look at the current state of facade easement
On their 2003 tax return, the Kaufmans claimed a charitable contribution for the cash endowment donation of $16,8408 and a noncash contribution of $220,800 for the facade easement
donation as a qualified conservation contribution.
A facade easement
gives the charity the right to control any changes made to the shell, and typically, only the exterior shell, of the historic building.
Lennhoff, MAI, testified before Congress on the valuation issues and methodology of facade easement
tax deductions on behalf of the Appraisal Institute.
Since the Trust began operations in New York in May 2002, it has facilitated more than 160 facade easement
donations, enabling property owners to benefit from the Historic Tax Incentive Program and ultimately accelerating voluntary preservation efforts throughout the area.