AUGUSTA, Georgia — A judge last month ruled to allow an almost $8 million charitable deduction claimed by Champions Retreat, following the Evans golf course’s win in a 2020 federal tax case. Evans is a suburb of Augusta.
The case has been in litigation since 2013, when the Internal Revenue Service rejected a $10.4 million conservation-easement deduction. U.S. Tax Court Judge Cary Douglas Pugh recently decided to allow more than $7.8 million of the $10.4 million deduction claimed by Champions Retreat Golf Founders LLC on its 2010 tax return.
Champions Retreat acquired more than 463 acres of land in April 2002 to develop a neighborhood, Founders Village, and a 27-hole golf course.
The Evans course, which hosts the annual Augusta National Women’s Amateur tournament, was completed in June 2005 and boasts three 9-hole courses, a pro shop, a restaurant, a locker room and a driving range. The three courses were designed by golf legends Gary Player, Arnold Palmer and Jack Nicklaus.
Carolina Melgrati, of Italy, tosses her club after missing a putt during day two of the second round of the Augusta National Women’s Amateur at Champions Retreat on Friday, April 1, 2022. (Photo by Katie Goodale/USA TODAY NETWORK)
The easement, subsequent sale
Then-owners of the Champions Retreat Golf Club granted a 349-acre easement to the North American Land Trust on Dec. 16, 2010, after the recession.
Conservation easements enable property owners to take charitable tax deductions on properties gifted to land trusts.
The easement area included 25 holes of the golf course, most of the two remaining holes and the driving range. Owners claimed a $10.4 million charitable deduction for the 2010 taxable year for the grant of the easement to the land trust, basing the deduction off its appraiser’s evaluation.
In October 2014, the golf club and some of its cabins were sold to Tower Three Partners and its affiliate, San Diego-based Heritage Golf Group for $6.64 million.
Hsin-Yu Li, of Chinese Taipei, putts during the second round of the Augusta National Women’s Amateur at Champions Retreat on Thursday, March 31, 2022. Rain delayed tee times until 3 p.m. (Photo by Katie Goodale/USA TODAY NETWORK)
Deduction denied in 2018
In September 2018, Champions Retreat argued the easement satisfied conservation purposes by protecting the natural habitat of wildlife and the ecosystem and preserved open space, according to court documents. It noted specifically the…
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