Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Tuesday, August 11, 2020

How Conservation Easement Tax Shelters Became An Issue In A Current Georgia Congressional Race

Rome"The controversy over syndicated conservation easements tax shelters has raised its ugly head in the Congressional race in the 14th District in Georgia."

It is likely that representation of the district in Congress will be deterred by a primary run off for the Republican Party on August 11th. The runoff candidates for the nomination for the replacement of Tom Graves are neurosurgeon John Cowan and construction executive Marjorie Taylor Greene. 

Below is a statement Marjorie Taylor Greene's campaign issued criticizing her opponent for his connection to the syndicated conservation easement industry:

I’ve never been fond of rats, snakes, and swamp creatures... or liars. My opponent John Cowan is propped up and funded by the good ‘ole boy corrupt Rome swamp that is desperate for special favors and get out of jail free cards. Rome, Ga is plagued by a massive corrupt abusive tax shelter scam currently being investigated by the IRS and the DOJ. . . John Cowan only cares about slithering his way up to the big swamp in DC to join the other swamp creature and play the same age old game of greedy corruption all for power and money. The people won’t stand for this on August 11th! Vote Marjorie Taylor Greene to drain the swamp!"

Ms. Greene is the favorite to win the runoff as she finished first in the primary with 40.3% of the vote. John Cowan  came in second out of six with 21% of the vote. According to his website "he is Pro Trump, Pro Life and Pro Gun and is ready to “fight against any efforts by the left to rebrand socialism, undermine our Constitution or threaten our freedoms”.

If you own property and contribute an easement and passing on your rights to change the property to a qualified organization, you can take a federal income tax deduction for the value of that easement. "Since there is not a lot of market for easements you generally value them based on the difference between the before easement and after easement value of the property."

This allows an investor to invest in an easement and bring in a a whopping amount in tax revenue all for creating an easement. The IRS and the DOJ aren't too fond of the idea and the topic has become an issue in the congressional race. 

See Peter J. Reilly, How Conservation Easement Tax Shelters Became An Issue In A Current Georgia Congressional Race, Forbes, July 31, 2020. 

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.

https://lawprofessors.typepad.com/trusts_estates_prof/2020/08/how-conservation-easement-tax-shelters-became-an-issue-in-a-current-georgia-congressional-race.html

Appointments and Honors, Current Events, Estate Planning - Generally, Income Tax | Permalink

Comments

Post a comment