IRS marks Syndicated Conservation Easements as Listed Transactions

This morning the IRS released Notice 2017-10 identifying syndicated conservation easements as listed transactions.

The notice describes a syndicated conservation easement as a transaction in which “an investor receives promotional materials that offer prospective investors in a pass-through entity the possibility of a charitable contribution deduction that equals or exceeds an amount that is two and one-half times the amount of the investor’s investment.” The rule applies whether the interest is purchased directly or indirectly, i.e., through another pass-through entity.

Transactions of the type described in the above paragraph are now “listed transactions” under Treas. Reg. Sec. 1.6011-4(b)(2) and IRC Secs. 6111 and 6112. Investors, material advisors and appraisers should disclose any such transaction for periods dating back to January 1, 2010. The notice provides that any disclosures required before May 1, 2017 will be considered timely filed if they are filed by that date.

Contact Asbury Law Firm with additional questions about this notice and its application to you or your clients.

IRS Notice 2017-10

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