-9-
Guest v. Commissioner, 77 T.C. 9, 15-16 (1981) (quoting Weil v.
Commissioner, 31 B.T.A. 899, 906 (1934), affd. 82 F.2d 561 (5th Cir.
1936)). An objective inquiry must be made into the nature of the
transaction to determine whether that which is labeled as a gift is
in substance a gift. Pettit v. Commissioner, 61 T.C. 634, 638-639
(1974); Grinslade v. Commissioner, 59 T.C. 566 (1973).
A prerequisite to the required irrevocable transfer is that the
donors possess legal title to the property prior to the purported
donation. Assuming the donors held title, the donee must then
accept the gift.
The parties agree that the State of Delaware is a qualified
donee within the meaning of section 170(c)(1). The parties,
however, disagree as to: (1) Whether petitioners had good legal
title to the 1988 gift land at the time of the purported donation;
(2) whether the gift was completed and accepted by the State of
Delaware; and (3) whether petitioners had donative intent.
We do not believe that petitioners are entitled to 1991 or 1992
charitable contribution deductions with regard to the 1988 gift land
for several reasons. First, petitioners have not satisfied their
burden of proving that they possessed good legal title to the 1988
gift land. At the time of the purported donation, it was doubtful
whether petitioners possessed good legal title to the property.
Chain of title was uncertain. Prior to petitioner's purchase of the
1982 quitclaim deed, the last record title to the interest
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