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![handle is hein.journals/furth84 and id is 1 raw text is:
OHIO STATE LAW.JOURNAL. ONLINE
Conservation Easement Deductions and a
Practical Approach to the Mortgage
Subordination and Proceeds Requirements
CONNER JUDSON*
TABLE OF CONTENTS
I. IN TRO D U CTION ......................................................................... . 1
II. THE MORTGAGE SUBORDINATION AND PROCEEDS REQUIREMENTS
AND INTRODUCTION TO THE CASE LAW .......................................... 3
A. The Mortgage Subordination and Proceeds Requirements......4
B. Interpretations of the Mortgage Subordination and Proceeds
R equirem en ts ...................................................................... . 5
1. The First Circuit Approach in Kaufman III ..................6
2. The Strict Approach in Palmolive .................................7
III. COURTS AND THE IRS SHOULD EMBRACE THE PRACTICALITY OF
THE KAUFMANIIIAPPROACH...................................................... 9
A. The Kaufman III Approach is Preferable Because It Maintains
Proper Incentives, Upholds the Aims of § 170(h), and
Ultimately Reflects a Broader Trend Towards Flexibility ....... 9
1. The Kaufman III Approach Maintains Proper
In cen tives ....................................................................... . 9
2. Relying on the Donor-Donee Relationship Still Comports
with the Legislative Aims of § 170(h) ..........................13
3. More Flexibility is Being Introduced Outside the First
C ircu it........................................................................ . 14
B. The IRS Should Focus on Conservation and Valuation Issues
Rather Than Technical Requirements ................................15
IV . C ON CLU SIO N ............................................................................ . 17
I. INTRODUCTION
Conservation easements have emerged as an important tool in the constant
struggle to balance economic advancement with environmental and historic
protection, and have even been utilized for community development.1 A
* Online Editor, Ohio State Law Journal; J.D. Candidate, The Ohio State University
Moritz College of Law, 2023. I would like to thank my family for their love and support, and
my peers on the OSLJ Online team for their hard work and assistance. All errors are my own.
1 See Richard J. Roddewig, Conservation Easements & Their Critics: Is Perpetuity
Truly Forever ... And Should It Be?, 52 UIC J. MARSHALL L. REv. 677, 679 (2019);
2023]1
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