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transfer. Petitioner claimed a charitable deduction with respect
to the bargain sale of the Property on his 1986 income tax
return, with a carryover of the remaining amount on his 1987,
1988, and 1989 income tax returns. Respondent disallowed the
entire charitable deduction claimed on petitioner's 1986 income
tax return and subsequent carryover years.
OPINION
The primary issue for decision is the fair market value of
the transferred property for purposes of determining the proper
amount of petitioner's charitable contribution deductions.
Petitioner bears the burden of proving that the fair market value
of the transferred property exceeds the value determined by
respondent in her notice of deficiency. Rule 142(a); Welch v.
Helvering, 290 U.S. 111 (1933); Estate of Gilford v.
Commissioner, 88 T.C. 38, 50-51 (1987); McGuire v. Commissioner,
44 T.C. 801, 806-807 (1965).
Section 170 allows an individual to deduct charitable
contributions, subject to certain percentage limitations, with a
carryover of any excess contributions. See sec. 170(b), (d). If
a charitable contribution is made in property other than money,
the amount of the taxpayer's contribution is the fair market
value of the property at the time of the contribution. Sec.
1.170A-1(c), Income Tax Regs. A taxpayer who makes a bargain
sale to charity of long-term capital gain property is typically
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