Appeals Court says gift with easement is deductible

The Second Circuit Court of Appeals has reversed the Tax Court and held that a donor’s payment of cash to a preservation organization to give it funds to enforce a historic façade easement is a charitable contribution and not a quid pro quo transaction as the Tax Court had ruled. The Court of Appeals has also overruled the Tax Court in holding that the donor’s appraisal met the requirements of spelling out its methodology so that it met the requirements for a qualified appraisal.