Contents

§ 9.7 REAL PROPERTY USED FOR CONSERVATION PURPOSESperpetuity is not satisfied if any method of mining that is inconsistent with theparticular conservation purposes of a contribution is permitted at any time. 183 Aqualified mineral interest is the donor’s interest in subsurface oil, gas, or otherminerals and the right of access to the minerals. 184(e) ValuationThe amount of the charitable contribution deduction, in the case of a contributionof a donor’s entire interest in conservation property (other than a qualifiedmineral interest), is the fair market value of the surface rights in the propertycontributed. 185 The value for the deduction is computed without regard to themineral rights. 186 In the case of a contribution of a remainder interest in realproperty, depreciation and depletion of the property must be taken into accountin determining the value of the interest. 187 The value of a charitable contributionof a perpetual conservation restriction is the fair market value of the restrictionat the time of the contribution. 188 In the case of a contribution of a qualified realproperty interest for conservation purposes, the basis of the property retained bythe donor must be adjusted by the elimination of that part of the total basis ofthe property that is properly allocable to the qualified real property interestgranted. 189(f) SubstantiationIf a donor makes a qualified conservation contribution and claims a charitablecontribution deduction for it, the donor must maintain written records of:• the fair market value of the underlying property before and after the contribution,and• the conservation purpose furthered by the donation.This information may have to be part of the donor’s income tax return. 190This requirement is in addition to the general charitable contribution substantiationrequirements. 191(g) Relationship to Rehabilitation Tax CreditIt was held that a partnership must recapture a portion of a rehabilitation tax creditand reduce its basis in the underlying rehabilitated property, upon its donation to acharitable organization of an historical facade easement, when the gift occurred inthe same year the partnership claimed the tax credit. 192 The partnership was183 Reg. § 1.170A-14(g)(4).184 Reg. § 1.170A-14(b)(1)(i).185 See, e.g., The Stanley Works v. Commissioner, 87 T.C. 389 (1986) (the value of a conservation easement donatedto charity is based on the highest and best use of the land).186 Reg. § 1.170A-14(h)(1).187 IRC § 197(f)(4); Reg. § 1.170A-14(h)(2).188 Reg. § 1.170A-14(h)(3).189 Reg. § 1.170A-14(h)(3)(iii).190 Reg. § 1.170A-14(i).191 See § 21.1.192 Rome I Ltd. v. Commissioner, 96 T.C. 697 (1991). 291