Opinion ID: 2655894
Heading Depth: 3
Heading Rank: 1

Heading: 170A-14(h)(3)(ii) does also.

Text: - 22 - clearly supporting this proposition. 12 The Tax Court correctly concluded that: [The Taxpayers] had no property rights in a conservation easement contribution State tax credit until the donation was complete and the credits were granted. The credits never were, nor did they become, part of the [Taxpayers’] real property rights. Instead, [the Taxpayers’] holding period in their credits began at the time the credits were granted and ended when petitioners sold them. Since petitioners sold their State tax credits in the same month in which they received them, the capital gains from the sale of the credits are short term. Tempel, 136 T.C. at 355. Moreover, the tax credits did not replace the value of the donated easements through any type of like-kind exchange, thus no “tacking” of holding periods is permitted. 13 See I.R.C. § 1223. AFFIRMED. 12 Neither did the Taxpayers address the Commissioner’s response to this issue in their reply brief, nor did they address this issue at oral argument. 13 If this were a like-kind exchange (conservation easements in exchange for tax credits), then this would negate the charitable nature of the Taxpayers’ contribution. See United States v. Am. Bar Endowment, 477 U.S. 105, 116 (1986) (A donation “generally cannot constitute a charitable contribution if the contributor expects a substantial benefit in return.”). - 23 -