The Tax Court has significantly reduced the charitable contribution deductions claimed for historic façade easements imposed on historic apartment buildings in Buffalo, NY, but has ruled that the difference does not justify a penalty tax for a gross valuation misstatement. Anthony and Suzanne Kissling, 90% owners of Kissling Interests, LLC, claimed charitable contribution deductions of $770,000 for the gift of façade easements over three years from 2004 through 2006. They argued that amount was their proportionate share of the difference between the value of the properties before the gifts and the value afterwards as encumbered by the easement restrictions. The IRS argued that the easements...