Valuation of Perpetual Conservation Easement Upheld in US Tax Court

In a landmark decision dated June 22nd 2009, the analyses and opinions developed by Claud Clark III were upheld by the US Tax Court. The case involved the value of a perpetual conservation easement which is part Kiva Dunes Golf Course located on the Fort Morgan peninsula. This easement was transferred to the North American Land Trust by owner Kiva Dunes LLC in December 2002 for the purpose of preserving wildlife habitat and open space vistas. Mr. Clark was engaged to determine the deduction value of the contribution.

Claud claimed a deduction value of $30,588,235. Kiva Dunes also made a $35,000 contribution to NALT. The IRS rejected the deduction and Kiva Dunes LLC appealed to the Tax Court.

The deduction for the contribution depends on a “before and after” determination of value. The United States Tax Court decision in favor of the analysis by Claud Clark is significant because it endorses the use of highest and best use subdivision analysis in the valuation of the easement.

The case was tried by David M. Wooldridge and Ronald A. Levitt of the firm, SIROTE & PERMUTT. See for for more details of the case.

For more information about Land Conservation Easements, see

See also

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Valuation of Land Conservation Easements is one of the many services provided by Clark Davis P.C.  Please contact us with any inquiries or requests for assistance.