Unsubordinated mortgage voids deduction for easement

Unsubordinated mortgage voids deduction for easement

The Eighth Circuit Court of Appeals has agreed with decisions in the Ninth and Tenth Circuits and has held that the grant of a conservation easement is not eligible for a charitable contribution deduction when the underlying property is subject to a mortgage that has not been subordinated to the easement.  As a result, RP Golf, LLC, the owner of two private golf clubs in Missouri, has lost its claim for a $16.4 million deduction.

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