A developer acquired a parcel of unimproved real property that she would like to improve. Although the land is currently zoned for commercial use, the developer would prefer not to begin development until an adjoining city street is widened. With a wider street, her development can include a landscaped public entrance and lighting. Without the widening, the development will have only one entrance, which is neither as accessible nor as attractive.
The city plans to widen the street in order to build bike paths which are now required in its new city plan. It will be easier for the city to widen the street if it acquires an easement across developer's property. Developer is interested in providing this easement to the city. However, before she acts, developer would like assurance that she will receive a charitable deduction for the value of the easement. She has asked you to request a letter ruling on this matter.
Your supervisor said she is aware of a Tax Court case named DeJong that may provide some help.
Does the case address the research question(s)?
b. How similar to the facts in the developer's are the facts in this case?
As a result of studying the case, do you believe there are additional facts you should seek?
What questions remain that require further research?