IRS Sees Problems with Excessive Deductions for Facade Easements

摘要

Tax incentives for conservation contributions can play an important role in the preservation of historic properties, but taxpayers appear to be taking excessive deductions for fagade easements, according to Steven T. Miller, commissioner of the tax-exempt and government entities division of the Internal Revenue Service. Miller testified at a June 23 hearing on facade easements by the House Ways and Means Committee's oversight subcommittee. In order for an easement to be eligible for a tax deduction, the National Park Service (NPS) must list the property on the National Register of Historic Places or certify the property as being of historic significance to a registered historic district. Fagade easements can be donated for residential or commercial property. According to Miller, the number of applications to the NPS for certifications increased from 154 in 2001 to 705 in 2003 and 750 in 2004, with the largest number of easements concentrated in Washington, D.C., New York City, and Chicago.