Historic Preservation Easement Audits – Former IRS Lawyer
Cal Bomar is a former IRS Chief Counsel attorney who helps clients in historic preservation easement audits and with promoter malpractice cases.
Bomar Law Firm is located in Atlanta, GA, but the firm helps clients throughout the United States in tax cases. We place an extremely high priority on getting each client to the best result.
Historic Preservation Easements – IRS Audits and Litigation
A historic preservation easement is an agreement made between a real property owner (donor) and a qualified easement-holding organization (donee) to protect a historic property by restricting future changes to or development of the property, and may be drafted to last forever or for a term of years. or a certain number of years (often referred to as “term” easements) with the interests of the easement-holding organization expiring at the end of the term.
This type of easement is sometimes required to receive certain types of grants from a nonprofit organization or local government.
The contribution of a historic preservation easement may give rise to a charitable deduction equal to the fair market value.
The IRS frequently attacks these types of easements, especially facade easements (where the donor agrees not to modify the façade of their historic house or building, and give an easement to this effect to a charity).
IRS takes the position that many Taxpayers take improperly large deductions. If the façade was already subject to restrictions under local zoning ordinances, IRS takes the position that the taxpayers are giving up nothing, or very little, with the argument that a taxpayer cannot give up a right that he or she does not have.
Common attacks by IRS against the charitable deduction include that there exists noncompliance with substantiation requirements and use of improper appraisal methodologies.
Contact Us Today
For a detailed analysis of your historic preservation easement case, or of a malpractice or negligence case involving historic conservation easements, contact Bomar Law Firm at (404) 841-6561. Our tax attorneys place a high priority (whether in audit, Tax Court litigation or post litigation tax relief), in guiding clients to the best possible result.