Commissioner v. Simmons
396 U.S. App. D.C. 133
| D.C. Cir. | 2011Background
- Simmons donated conservation easements to L'Enfant Trust on two DC properties in 2003 and 2004.
- The properties are in Logan Circle and near Vermont Avenue and are subject to DC historic preservation laws.
- The deeds prohibit substantial façade alterations without L'Enfant consent, require maintenance, and provide inspection rights.
- L'Enfant Trust is a 501(c)(3) organization; Simmons claimed charitable deductions under 26 U.S.C. §170(h)(1) and §170(f)(3)(B)(iii).
- Tax Court upheld deductions but limited the value for 2003 and 2004 at issue; IRS appeal challenged perpetuity and appraisal qualifications.
- This appeal concerns whether the easements were exclusively for conservation purposes and whether the appraisals were qualified under Treas. Reg. §1.170A-13(c).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the easements were exclusively for conservation purposes. | Simmons argues perpetuity and preservation restrictions suffice to meet exclusivity. | Simmons contends consent/abandonment clauses and non-perpetual features undermine exclusivity. | Yes; easements meet exclusivity and perpetuity requirements. |
| Whether Simmons provided qualified appraisals under Treas. Reg. §1.170A-13(c)(3)(ii). | Donnelly identified method and basis for valuation using before/after approach and comparable encumbered sales. | Appraisals lacked explicit method/basis details; relied on an internal IRS article for Valuation percentage. | Yes; appraisals satisfied substantiation and qualified appraisal requirements. |
Key Cases Cited
- Spirit of the Sage Council v. Norton, 411 F.3d 225 (D.C. Cir. 2005) (cursory arguments not accepted; substantiation adequate)
- Jombo v. Comm'r, 398 F.3d 661 (D.C. Cir. 2005) (mixed questions of fact and law review for clear error)