In REG-106134-22, the IRS announces proposed regulations that classify certain syndicated conservation easement transactions and some similar transactions as listed transactions. These regulations affect both some participants in these transactions as well as any material advisors involved. The proposed regulations do not allow qualified organizations to be treated as participants or parties to a prohibited tax shelter transaction subject to excise tax. It is still being considered whether the proposed regulations should remove the exclusion from the application of the excise tax for qualified organizations that facilitate syndicated conservation easement transactions.
Posted by Benjamin Sapozhnikov, Associate Editor, Wealth Strategies Journal.