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IRS Notice Identifies Certain Conservation Easement Transactions as Tax-Avoidance Transactions

Friday, December 23, 2016 - 9:00AM

The Internal Revenue Service will publish in the Jan. 23, 2017 issue of the Internal Revenue Bulletin Notice 2017-10, informing taxpayers that certain syndicated conservation easement transactions are identified as tax-avoidance transactions and must be listed transactions and disclosed in each taxable year. The notice specifically applies to transactions that purport to give investors the opportunity to obtain charitable contribution deductions significantly larger than the amount invested–often 2.5 times the amount of the investor’s share of the investment. The IRS says taxpayers who have filed returns taking the position they were entitled to the benefits of this type of transaction should take appropriate corrective action.

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