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that the limitation provision of section 170(b) was not
applicable. Respondent allowed the Kanters a deduction for the
charitable contributions listed on their return except a
contribution of $15,000 to the Jewish United Fund (JUF).
On or about December 17, 1982, Holding Co., by Meyers,
president, executed a promissory note dated December 17, 1982,
payable to Kanter in the face amount of $15,000 due on March 1,
1983, with interest at 12 percent per annum. Respondent has not
disputed that this indebtedness is bona fide.
On December 27, 1982, Holding Co., by Meyers, president,
sent a letter to JUF enclosing the Holding Co. note and Kanter's
pledge card to JUF for $15,000. This letter stated in pertinent
part that Holding Co. "will pay its note to Kanter who will, in
turn, see to providing these funds to JUF". In a letter to
Kanter dated December 30, 1982, JUF acknowledged its receipt of
the Holding Co. promissory note. The December 30, 1982, letter
further stated that "This note has been assigned by you to * * *
JUF as a charitable contribution, and we are pleased to accept it
as such".
On February 28, 1983, Holding Co. paid to Kanter the $15,000
face amount due on the Holding Co. note plus interest of $370.
Kanter reported the interest paid on the Holding Co. note on his
income tax return for 1983.
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