CORNING PLACE OHIO, LLC; CORNING PLACE OHIO INVESTMENT, LLC; TAX MATTERS PARTNER v. COMMISSIONER OF INTERNAL REVENUE - Articles

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CORNING PLACE OHIO, LLC; CORNING PLACE OHIO INVESTMENT, LLC; TAX MATTERS PARTNER v. COMMISSIONER OF INTERNAL REVENUE

Posted by: Azya Thornton on Nov 5, 2025

Court: 6th Circuit Court (Published Opinions)

Attorneys 1: ARGUED: G. Karl Fanter, BAKER & HOSTETLER LLP, Cleveland, Ohio, for Appellants.

Attorneys 2: ARGUED: Samuel P. Jones, UNITED STATES DEPARTMENT OF JUSTICE, Washington, D.C., for Appellee.

Attorneys 3: ON BRIEF: G. Karl Fanter, Sam A. Camardo, BAKER & HOSTETLER LLP, Cleveland, Ohio, for Appellants.

Attorneys 4: ON BRIEF: Samuel P. Jones, Jennifer M. Rubin, UNITED STATES DEPARTMENT OF JUSTICE, Washington, D.C., for Appellee.

Judge(s): SUTTON, Chief Judge; BATCHELDER and LARSEN, Circuit Judges

Court Appealed: On Appeal from the United States Tax Court

SUTTON, Chief Judge. In 2016, Corning Place paid $6 million to buy the Garfield Building, an eleven-floor, nineteenth-century property in downtown Cleveland. Sixteen months later, it created an “Historic Preservation and Conservation Easement,” which would donate the right to modify the façade and to increase the Garfield’s height (by 34 floors) to a local charity. Corning Place claimed a $22 million tax deduction for that donation, nearly four times what it had paid for the building. The Internal Revenue Service disallowed the deduction and imposed penalties. It found that Corning Place claimed the deduction for the wrong year, substantially overvalued its worth, and failed to document key expenses. Corning Place challenged the disallowance and penalties in Tax Court. The Tax Court agreed with the IRS. We do too and affirm.

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