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deduction claimed. The regulations set up three tiers of
deductions, for amounts up to and including $500, greater than
$500 but less than $5,000, and greater than $5,000, and require
greater substantiation for each tier. See sec. 1.170A-13, Income
Tax Regs. The third tier applies to “any charitable contribution
* * * of property * * * if the amount claimed or reported as a
deduction under section 170 with respect to such item exceeds
$5,000.” Sec. 1.170A-13(c)(1), Income Tax Regs. For purposes of
this threshold, the aggregate amount claimed for items of
“similar property” is considered. Sec. 1.170A-13(c)(1)(i),
Income Tax Regs. One of the categories of similar property is
clothing. Sec. 1.170A-13(c)(7)(iii), Income Tax Regs. Because
petitioner claimed a deduction for clothing in the amount of
$6,000, she must meet the requirements of the third tier with
respect to clothing. For the third tier, the taxpayer must
obtain a qualified appraisal to substantiate the deduction. Sec.
1.170A-13(c)(1), Income Tax Regs. Petitioner has presented no
appraisal of any kind and is therefore not entitled to a
deduction for the clothing.
The remaining $600 in claimed noncash contributions, which
is the total estimate for several household items, has been
substantiated as required by the regulations. Since petitioner
has not claimed a single item or category worth more than $500,
the regulations covering noncash contributions of $500 or less
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Last modified: May 25, 2011