TOT Property Holdings, LLC v. Commissioner of IRS: Tax Court Properly Determined Noncompliance with Extinguishment Proceeds Requirement

The Tax Court correctly determined that an entity did not comply with extinguishment proceeds requirement in a deed. The deed was not saved by the disputed provisions because they constituted an unenforceable condition-subsequent savings clause. The deed donated for conservation purposes, an easement encumbering the taxpayer’s property. It also contained a formula for the distribution of proceeds and was not saved by purported interpretive provisions. The Court of Appeals for the Eleventh Circuit affirmed the Tax Court’s upholding of the IRS’s disallowance of TOT’s tax deduction and the assessment of accuracy-related penalties.

See full opinion, click: TOT Property Holdings, LLC v. Commissioner of IRS: Tax Court Properly Determined Noncompliance with Extinguishment Proceeds Requirement.

Posted by Jessica Ji, Associate Editor, Wealth Strategies Journal.

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