On the day the facade easement
was recorded, Harbor Lofts and the EDC amended the lease term on the buildings until Dec.
Architectural Trust (NAT) of a facade easement
on a building in a
2016), a partnership made a charitable contribution of a facade easement
over a New York City building and reported a deduction of $2.21 million in 2004, the year the partnership delivered the easement to the charitable donee.
Donation of facade easement
in historic district fails to qualify for tax deduction
were held to investigate facade easement
In 2003, the taxpayers granted a facade easement
to the NAT, restricting the use of the property.
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.
Is a gift of a "conservation easement" or a "facade easement
(8) A variation on the conservation easement is the use of a facade easement
, where the landowner agrees not to alter the facade or modify the architectural characteristics of a particular building.
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." However, in 2003, the Internal Revenue Service dropped the safe harbor concept, while continuing to require meaningful market analysis to support the opinion of the "after" easement value.
: In Big River Development, L.P., (12) a partnership was allowed a $7 million noncash charitable deduction for a facade easement
* A look at the current state of facade easement