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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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Last modified: May 25, 2011