Ezel / IRS Rulings / 201212010

CCA 201212010: IRS discusses qualified conservation contributions involving water rights

Number
201212010
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 discussed an article addressing qualified conservation contributions involving partial interests in appropriative or riparian rights. The advice noted that a donation of an entire interest in an appropriative right would likely be rare and questioned why a redacted memorandum focused on that point. It suggested that the argument should instead address whether the qualified conservation contribution exception applies. The brief document does not state a final conclusion on the underlying contribution.

Ruling snapshot

  • Question: Should the analysis focus on the qualified conservation contribution exception for a donation involving an appropriative right?
  • Outcome: Advice given.
  • Key authorities: IRC § 170; 26 U.S.C. § 6110(k)(3)

Full text (IRS public release)

ID: CCA-107515-11 Number: 201212010
Release Date: 3/23/2012
Office: --------------
UILC: 170.14-00

From: -----------------------
Sent: Friday, October 07, 2011 5:15 PM
To: --------------
Cc: ----------------
Subject: RE: NEW - -------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------

This is also interesting because, although the Hicks article mainly focuses on the qualified conservation contribution of a partial interest in an appropriative or riparian right, it does state on page 105 that "a donation of an entire interest in an appropriative right will likely be rare" and CO law is included in the survey, so why does ---- focus on this in his memo. His argument should instead be that the qualified conservation contribution exception applies?

What does the Code say today, for your facts?

This advice was written for IRS staff and cannot be cited. Ezel checks the current Internal Revenue Code and IRS guidance against your situation, with citations.

Opens in Ezel Pro.

  • Checks the law as it stands today, not only this page
  • Cites every source it relies on, so you can verify it
  • Chat, drafting and research in one workspace