Ezel / IRS Rulings / 201212009

CCA 201212009: IRS discusses the entire-interest requirement for a conservation contribution

Number
201212009
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Qualified Conservation Contribution
Topics
Income and deductions
Code sections
§ 170, § 6110
Ruling dated
October 7, 2011
Publicly released
March 23, 2012
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2012, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2012
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

The Office of Chief Counsel commented on an analysis involving a qualified conservation contribution. It stated that a redacted reader had interpreted a General Counsel Memorandum and a revenue ruling incorrectly. The advice explains that an overriding royalty's separate property status under local law, marketplace practice, and federal tax law does not by itself mean that the contributed portion is the taxpayer's entire interest or that the contribution is deductible. The document does not make a broader determination on the redacted facts.

Ruling snapshot

  • Question: Does an overriding royalty's separate property status make a contributed portion the taxpayer's entire interest and therefore deductible?
  • Outcome: Advice given.
  • Key authorities: IRC § 170; General Counsel Memorandum; revenue ruling; 26 U.S.C. § 6110(k)(3)

Full text (IRS public release)

ID: CCA-107434-11 Number: 201212009
Release Date: 3/23/2012
Office: --------------
UILC: 170.14-00

From: -----------------------
Sent: Friday, October 7, 2011 4:34 PM
To: --------------------------------
Cc:
Subject: RE: NEW - ------------------------------------------------------------------------

It looks like ---- read the G.C.M. and Rev Rul. incorrectly, for example:

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But the G.C.M. on page 5 explains that just because the overriding royalty has "separate property status of which is recognized not only under local law and in the marketplace, but also for federal tax purposes" does not make the contributed portion the taxpayer's entire interest and therefore deductible.

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