Harry T. Cavalaris - Page 20

                                       - 20 -                                         

          expenditures made by petitioner for other individuals do not                
          constitute payments "to" a charitable organization.                         
               As noted above, section 1.170A-1(g), Income Tax Regs.,                 
          allows a taxpayer a deduction for unreimbursed expenses incurred            
          incident to the rendition of charitable services.  In Davis v.              
          United States, supra, the Supreme Court held that the taxpayers             
          were not entitled to deduct amounts paid to their sons to finance           
          the expenses of their sons' Mormon missions.  In rejecting the              
          taxpayers' claim that the expenses were deductible as                       
          unreimbursed expenses the Supreme Court noted that the taxpayers            
          did not render the services, their sons did.  Id. at 487.                   
          Petitioner's situation is slightly different, in that he did                
          independently render charitable services.  Nonetheless, we                  
          conclude the expenses paid on behalf of others are more                     
          accurately characterized as nondeductible gifts made to specific            
          individuals rather than expenses incurred by petitioner incident            
          to his rendering of charitable services.                                    
               Petitioner cites Rockefeller v. Commissioner, 676 F.2d 35              
          (2d Cir. 1982), affg. 76 T.C. 178 (1981), Smith v. Commissioner,            
          60 T.C. 988 (1973), and McCollum v. Commissioner, T.C. Memo.                
          1978-435, for the proposition that a taxpayer may deduct payments           
          made for the expenses of others pursuant to section 1.170A-1(g),            
          Income Tax Regs.  McCollum and Smith involved situations where              
          parents and their children incurred expenses while both rendered            





Page:  Previous  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  Next

Last modified: May 25, 2011