Palmolive Building Owners Lose $33M Charitable Deduction

Law360, New York (October 10, 2017, 9:33 PM EDT) -- The owners of the historic Palmolive Building in Chicago lost their bid to write off $33.4 million on their tax return for their donation of a facade easement when the U.S. Tax Court ruled Tuesday that the donee was not guaranteed to receive its share of proceeds if the easement were to be extinguished.

Palmolive Building Investors LLC had challenged a notice from the Internal Revenue Service “completely [disallowing]” the donation claim and simultaneously subjecting the company to a “gross valuation misstatement” penalty of 40 percent....
To view the full article, register now.