Women of the Motion Picture Industry, et al. - Page 13

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          is a charitable disbursement under Texas law.  Based on this                 
          proposition, FSEP, Schoenstatt, ACADA, and WSA argue that they               
          are entitled to deductions for all the proceeds from their                   
          "instant bingo" activities transferred to their general accounts.            
          Petitioners argue that such transfers are not distinguishable                
          from payments to outside charities.  Petitioners assert that each            
          organization's general funds were used only for exempt purposes.             
          Petitioners argue that these amounts are deductible as business              
          expenses pursuant to sections 162(a) and 512(a).                             
               Respondent counters that in order to be entitled to                     
          deductions under sections 162(a) and 512(a), petitioners must                
          establish that any amounts claimed were actually paid from their             
          general fund or account for charitable purposes during the years             
          in issue and that the amounts paid were attributable to "instant             
          bingo" proceeds.  Respondent contends that petitioners have                  
          failed to establish that they expended amounts from "instant                 
          bingo" proceeds transferred to their general accounts in excess              
          of those stipulated by the parties.                                          
               We do not agree with petitioners that a transfer of proceeds            
          from one account of an organization to another account of the                
          same organization is equivalent to a payment to an outside                   
          charity for Federal tax purposes, or more precisely for the                  
          purposes of sections 162(a) and 512(a).  Whether the transfers               
          qualified as disbursements for purposes of the Texas Act is not              
          dispositive of the Federal tax consequences.  Pursuant to section            




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