- 83 -
Theater Value Estimate $660,000
Retail/Office Value Estimate 631,000
Total Value Estimate $1,291,000
OPINION
I. Introduction
There is no dispute that petitioners' gift of the Redwood
City Fox and associated personal property to the Players is a
charitable contribution deductible under section 170(a)(1). We
find and hold that the fair market value of the personal property
on the date of donation was $96,000. Consequently, we need only
decide the fair market value of the Redwood City Fox as of
December 31, 1986, for purposes of determining the proper amount
of petitioners' charitable contribution deduction and carryover
deductions.37 We must also decide whether Jacobs is liable for
an addition to tax and penalties for the years at issue.
The fair market value of donated property is the price at
which the property would change hands between a willing buyer and
37 Petitioners initially argued that respondent was
precluded from redetermining the value of petitioners' 1986
charitable donation because the period of limitations under sec.
6501 had expired for taxable year 1986 at the time respondent
issued the notices of deficiency. Petitioners make no argument
regarding the statute of limitations in their briefs and appear
to have conceded this point. We note, however, that petitioners
executed extensions pursuant to sec. 6501(c)(4), and the notices
of deficiency were timely issued for each taxable year within the
period as set forth in sec. 6501(a). Although the charitable
contribution from which the carryovers arose was outside of these
periods, sec. 6501 does not foreclose this Court from looking to
a closed year to redetermine petitioners' tax liability for the
years at issue. See Barenholtz v. United States, 784 F.2d 375,
380-381 (Fed. Cir. 1986); see also Angell v. Commissioner, T.C.
Memo. 1986-528, affd. without published opinion 861 F.2d 723 (7th
Cir. 1988).
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