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Residence for as long as the Foundation desired. Mr. Stussy
amended the Trust the second time to provide that certain
investments, as well as the pension benefits and the Artwork,
would pass to the Foundation upon his death, and to name this
provision "CHARITABLE GIFT".
Mr. Stussy died on July 31, 1990. Until that time, he
resided at the Residence and was the only person entitled to
receive distributions of income or principal from the Trust.
Petitioner inherited the Residence upon Mr. Stussy's death.
Mr. Stussy's estate filed Mr. Stussy's 1990 Federal income
tax return, including an amendment thereto (collectively, the
Return). The Return claimed a charitable contribution of
$262,697, based on the transfer of the Rooms to the Foundation.
This contribution is the subject of the carryovers at issue
herein.
OPINION
Respondent determined that petitioner may not deduct the
amounts that he reported as charitable contribution carryovers.
Respondent argues primarily that Mr. Stussy, if anyone, was
entitled to a charitable contribution deduction for the transfer
of the Rooms to the Foundation and that any unused carryover that
remained at his death expired upon his death. Petitioner argues
that the unused charitable contribution at the time of
Mr. Stussy's death passed to petitioner because the Trust,
although a grantor trust upon formation, changed into a
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