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demolish the building at the time it is purchased. The record
shows that petitioner had no such intention. An intent formed
after the acquisition does not suffice. Panhandle State Bank v.
Commissioner, 39 T.C. 813, 816 (1963). The second reason is that
the house was not demolished, but was removed to a park and
apparently is still being used.
Respondent also contends that petitioner, having claimed the
book value ($38,662.62) of the house on his return, did not
establish its fair market value when he donated it to the city.
We disagree. We have found in these circumstances that the house
had a fair market value of $27,333.41, which represents the cost
allocated by petitioner to the house for depreciation purposes in
1975. We regard this amount as being equivalent to its fair
market value. Consequently, we hold that petitioner is entitled
to a charitable contribution deduction of $40,333.41 ($27,333.41
plus $13,000) in 1976.
C. Deduction for Charitable Contribution to Kenyon College
On the 1979 income tax return petitioner claimed a
charitable contribution deduction of $657,000 that pertained to
real estate given by him to Kenyon College in honor of his friend
Bill McCabe, who was dying of cancer. The claimed deduction was
reduced to zero by respondent in the notice of deficiency on the
ground that petitioner realized ordinary income from the
transaction.
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