Are Tenant-Stockholders Entitled to a Charitable Contribution Deduction when a Cooperative Housing Corporation Donates a Preservation Easement?
Abstract Most Tenant-Stockholders of cooperative housing corporations (CHC) view themselves as the owners of their apartments, a perception encouraged by the Internal Revenue Code (Code), which affords them those tax benefits most commonly associated with home ownership. This article explores the question of whether that perception is accurate with respect to the Codes tax incentives designed to encourage preservation of historic homes. The Code encourages homeowners to protect their historic homes with preservation easements by allowing a charitable contribution deduction equal to the resulting decline in the value of their home. If a CHC donates a preservation easement, the law is clear that the CHC is entitled to claim a charitable contribution deduction but less clear regarding whether the Tenant-Stockholders may do so as well. Because the statutory constraints placed on the amount of income a CHC may recognize, any charitable contribution deduction claimed by the CHC will, most li
Abstract Most Tenant-Stockholders of cooperative housing corporations (“CHC”) view themselves as the owners of their apartments, a perception encouraged by the Internal Revenue Code (“Code”), which affords them those tax benefits most commonly associated with home ownership. This article explores the question of whether that perception is accurate with respect to the Code’s tax incentives designed to encourage preservation of historic homes. The Code encourages homeowners to protect their historic homes with preservation easements by allowing a charitable contribution deduction equal to the resulting decline in the value of their home. If a CHC donates a preservation easement, the law is clear that the CHC is entitled to claim a charitable contribution deduction but less clear regarding whether the Tenant-Stockholders may do so as well. Because the statutory constraints placed on the amount of income a CHC may recognize, any charitable contribution deduction claimed by the CHC will, mo
Related Questions
- What is the effect on the charitable contribution deduction if a taxpayer made a disclaimer, or a partial disclaimer, of his or her required final annuity distribution from a CRT?
- Are Tenant-Stockholders Entitled to a Charitable Contribution Deduction when a Cooperative Housing Corporation Donates a Preservation Easement?
- Does a taxpayer who participates in the settlement initiative lose the charitable contribution deduction received for funding a CRT?
