The Tax Treatment of the Donation of Easements in Scenic and Historic Property

March 1979
Citation:
9
ELR 50009
Issue
3
Author
Stephen J. Small

An easement is a limited right, granted by the owner of real property, to use all or part of his property for specific purposes. A traditional legal use of an easement, for example, has been for owner A, on whose property a stream flows, to allow neighbor B to cross A's property in order to take water from A's stream.

Within the last century, this common-law device has been adapted to a modern purpose: natural resources conservation. Easements for conservation purposes touch a different set of rights—the property owner's right to develop, improve, or modify his property, and the buildings on it, generally as he sees fit. An easement for conservation or preservation purposes involves the relinquishment of some of these rights (i.e., the right to alter or diminish a building or to cut down a forest) and the power in the new holder of the easement to enforce the restrictions on the use of the property.

Mr. Small (B.A. 1967, Yale University; M.S.J. 1968, Northwestern University; J.D. 1978, Candidate for LL.M. in taxation, Georgetown University Law Center; member, District of Columbia Bar), was Executive Assistant to Senator Clifford P. Case (R-NJ) at the time this article was prepared. He is currently with the office of the Chief Counsel, Internal Revenue Service. The views expressed in this article are the author's and do not necessarily represent the official position of the Internal Revenue Service, the Department of the Treasury, or any other agency or department of the United States.

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