PBBM-Rose Hill, Ltd. v. Commissioner, No. 17-60276 (5th Cir. 2018)
Annotate this CaseThe Commissioner issued a final partnership administrative adjustment that determined PBBM was not entitled to a charitable contribution deduction to the North American Land Trust and assessed a penalty for the overvaluation of the conservation easement. The Fifth Circuit affirmed the district court's disallowance of a readjustment. The court held that while the contribution protected the conservation purpose of preserving land for outdoor recreation by the general public under 26 U.S.C. 170(h)(4)(A)(i), it did not meet the perpetuity requirement of section 170(h)(5)(A). Accordingly, the donation did not qualify for a deduction. Finally, the court found no error in the tax court's valuation of the easement or its determination of a penalty.
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