Tax Court Says ND Easement Restriction Nulls Deduction

Law360, New York (March 11, 2014, 6:38 PM EDT) -- The U.S. Tax Court ruled Tuesday that North Dakota conservation easements cannot qualify for a corresponding charitable deduction because of a state law that limits the duration of an easement to no more than 99 years.

In an opinion disallowing a family's charitable deductions, the Tax Court said North Dakota conservation easements subject to the law cannot qualify for charitable contributions because the law prevents easements from being granted “in perpetuity” as required by the Internal Revenue Code.

The case involves the Wachter family and their...
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