- 20 - determined that this amount was paid for State sales taxes and disallowed the deduction in full on the grounds that State sales taxes are not deductible. Prior to 1986, section 164(a)(4) allowed a deduction for State and local general sales taxes paid or accrued within the taxable year. Section 164(a)(4) was repealed by section 134(a)(1) of The Tax Reform Act of 1986, Pub. L. 99-514, 100 Stat. 2116. Petitioners offered no evidence that the $1,964 they deducted for "other taxes" represented anything other than State sales taxes. In fact, petitioners state in their posttrial memorandum that the "other taxes" were State sales taxes on personal property. Respondent is sustained on this issue. 6. Charitable Contributions On their 1990 Schedule A, Form 1040, petitioners claimed charitable contributions in the amount of $4,342. Respondent disallowed $126 of this amount for lack of substantiation. Section 170 allows a deduction for charitable contributions subject to certain limitations. If a taxpayer makes a cash contribution, the taxpayer in the absence of a canceled check or receipt from the donee must maintain other reliable written records showing the name of each charity, and the date and the amount of each contribution. Sec. 1.170A-13(a)(1)(iii), Income Tax Regs. Petitioners offered no evidence to substantiate their charitable contributions apart from the photocopies of hundredsPage: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
Last modified: May 25, 2011