The Tax Court has concluded in Averyt v. Commissioner (T.C. Memo. 2012-198) that the actual deed conveying a conservation easement to a charitable organization constituted a contemporaneous written acknowledgement that met the requirements of Section 170(f)(8).

Section 170(f)(8) requires taxpayers to substantiate a charitable contribution of $250 or more with a contemporaneous written acknowledgment from the donee organization that includes:

  1. information regarding the amount of cash and a description of any property other than cash contributed,
  2. information about whether the donee organization provided any goods or services in consideration for any property contributed, and
  3. a description and a good faith estimate of the value of any such goods or services.

Section 170(f)(8)(C) defines a "contemporaneous" acknowledgement as one received on or before the earlier of the date on which the taxpayer files a return for the year when the contribution was made, or the due date for that return, including extensions.

The taxpayers in Averyt contributed a conservation easement in real property to a charitable organization and did not receive a traditional letter from the charitable organization that would constitute a contemporaneous written acknowledgement. The taxpayers argued that the conservation easement itself constituted such an acknowledgement. The conservation deed was signed by a representative from the charitable organization, provided a detailed description of the property and the conservation easement, and was contemporaneous with the contribution.

The conservation deed stated that the easement was an unconditional gift, recited that no consideration was received in exchange for it and stipulated that the conservation deed constituted the entire agreement between the parties regarding the contribution of the conservation easement. The Tax Court agreed that, taken as a whole, the conservation deed provides that no goods or services were received in exchange for the contribution and satisfies the substantiation requirements of Section 170(f)(8).

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