Brokers raise billions for green land deals IRS calls tax scams
Expanded government crackdowns on syndicated conservation easement land deals are creating financial and legal headaches for some wealthy investors.
May 7, 2021 9 MINS
New York fund manager Andrew Beer got an unsolicited email offer a few months ago that sounded too good to be true join other investors to buy 276 acres of land in Mississippi, promise never to develop it, and get whopping tax deductions of as much as five times the amount invested.
The pitch was for what’s known as a syndicated conservation easement, a type of land deal that the Internal Revenue Service says is often an abusive tax shelter. The offer came from a family office with a website touting partnerships with Middle East wealth funds. As an added enticement, the salesman offered Beer options to insure against the risk of IRS audits and investor liability lawsuits.