John T. and Linda L. Hewitt - Page 8

                                        - 8 -                                         
                         similar items of property donated to 1 or                    
                         more donees) exceeds $5,000.                                 
                    In the case of any property which is nonpublicly                  
                    traded stock, subparagraph (B) shall be applied by                
                    substituting "$10,000" for $5,000".                               
               The Secretary of the Treasury has implemented the foregoing            
          provisions by issuing section 1.170A-13, Income Tax Regs., which,           
          among other matters, provides that a "qualified appraisal" be               
          obtained prior to the filing of the return in which the deduction           
          is claimed and that an appraisal summary be submitted with that             
               Respondent disallowed the amounts of petitioners' charitable           
          deductions for the Jackson Hewitt stock in excess of basis due to           
          the lack of qualified appraisals.7  Respondent does not dispute             
          that petitioners made charitable contributions to the church and            
          foundation within the respective taxable years or that the                  
          claimed values did not represent the fair market values of such             
          contributions.8  Petitioners maintain that they should be allowed           
          the claimed deductions because their use of the average per-share           
          price of Jackson Hewitt stock traded in bona fide, arm's-length             
          transactions constituted substantial compliance with the                    

               7  Respondent has not sought to disallow the contributions             
          in their entirety.  Cf. D'Arcangelo v. Commissioner, T.C. Memo.             
          1994-572; see also supra note 6.                                            
               8  Respondent has conceded the sec. 6662(a) penalty insofar            
          as it relates to the contributions to the church and the                    

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011