Harry T. Cavalaris - Page 8

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          Florida; Miami Beach, Florida; Richmond, Virginia; Jacksonville,            
          Florida; Virginia Beach, Virginia; Nassau, Bahamas; St.                     
          Augustine, Florida; Montgomery, Alabama; Birmingham, Alabama;               
          Athens, Greece; and Istanbul, Turkey.                                       
               On his 1990 and 1991 Federal income tax returns petitioner             
          deducted charitable contributions in the amounts of $29,105 and             
          $40,603,3 respectively.  The bulk of these amounts consisted of             
          unreimbursed expenses incurred during the above listed trips.               
          Petitioner asserts that these expenditures were incurred in the             
          process of providing services to the Greek Orthodox Church, St.             
          Photios, and AHEPA.  Typically, the amounts claimed as expenses             
          for any given trip include airfare, lodging at a deluxe hotel,              
          meals, other travel expenses, and generous tips (occasionally               
          exceeding $100).  Petitioner generally included, as an expense              
          for meals, the bill from an expensive lunch or dinner at which              
          petitioner treated numerous people attending the meeting.  The              
          1990 figure includes a $1,000 deduction for clothing donated to             
          the Crossnore School.                                                       
               In the notice of deficiency, respondent disallowed                     
          charitable contribution deductions for the taxable years 1990 and           
          1991 in the amounts of $11,177 and $14,492, respectively.  After            
          concessions, the amount of charitable contribution deductions in            

          3  The deduction claimed in 1991 was reduced to $37,074                     
          pursuant to sec. 170(b), which limits the amount a taxpayer can             
          deduct as a charitable contribution for any taxable year.                   




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