John T. Talkington and Margaret K. Talkington - Page 8

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                              ULTIMATE FINDINGS OF FACT                               
               The fair market value of the gifted Litton property on                 
          December 17, 1992, was $986,589.  The fair market value of the              
          Bates Center on September 23, 1992, was $237,154.                           
                                       OPINION                                        
               The issue for decision is the fair market value of the                 
          transferred properties for purposes of determining the proper               
          amount of petitioners' charitable contribution deductions.                  
          Petitioners bear the burden of proving that the fair market value           
          of the transferred properties exceeds the value determined by               
          respondent in the notices of deficiency.  Rule 142(a).                      
               Section 170 allows an individual to deduct charitable                  
          contributions, subject to certain percentage limitations, with a            
          carryover of any excess contributions.7  See sec. 170(b), (d).              
          If a charitable contribution is made in property other than                 
          money, the amount of the taxpayer's contribution is the fair                
          market value of the property at the time of the contribution.               
          Sec. 1.170A-1(c), Income Tax Regs.  Section 1.170A-1(c)(2),                 
          Income Tax Regs., defines fair market value as "the price at                
          which the property would change hands between a willing buyer and           
          a willing seller, neither being under any compulsion to buy or              
          sell and both having reasonable knowledge of relevant facts."               

               7  The parties have stipulated that the transfers of the               
          gifted Litton property and the Bates Center qualify for                     
          charitable contribution deductions pursuant to sec. 170(c).                 




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