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of the contribution subject to certain reductions. Section
1.170A-1(c)(2), Income Tax Regs., defines fair market value as
“the price at which the property would change hands between a
willing buyer and a willing seller, neither being under any
compulsion to buy or sell and both having a reasonable knowledge
of relevant facts.”
Petitioners offered virtually no evidence regarding the fair
market value of the computer and lease. The School received
lease payments on the Master Lease, but there is no proof that
those amounts were contributed by petitioners. Petitioners did
not contribute any cash to the School. Nor did petitioners
report as income any of the lease payments received by the
School. Moreover, petitioners have not offered proof on the
projected income stream, if any, with respect to the lease of the
computer equipment.
Petitioners have not proven that the fair market value of
the contributed property was in excess of the debt assumed.
Accordingly, we hold that petitioners are not entitled to a
charitable contribution deduction.
Issue 3. Section 6662 Substantial Understatement Penalty
Respondent determined that petitioners are liable for the
section 6662(a) penalty for 1990. Petitioners argue that there
was substantial authority for the position taken on their return.
Furthermore, petitioners argue that the complexity of the matter
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