Whitehouse Hotel Ltd. Prtnshp., et al. v. CIR, No. 13-60131 (5th Cir. 2014)Annotate this Case
Whitehouse appealed a second time from a ruling of the Tax Court disallowing a significant portion of a tax deduction claimed for a historic conservation easement. The easement burdened the Maison Blanche building in New Orleans with a number of restrictions and affirmative obligations, all revolving around maintaining the appearance of the ornate facade. Whitehouse claimed a charitable contribution deduction for the easement. The Commissioner allowed a deduction for less than the amount Whitehouse claimed and further assessed a gross undervaluation penalty. The court affirmed the tax court's second valuation; vacated the tax court's enforcement of the gross undervaluation of the penalty because the tax court clearly erred in applying it; and remanded for entry of judgment.