- 20 - 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Petitioners argue that they are entitled to a $149,230 deduction because (1) petitioners and the Trust had an oral agreement to operate as a partnership with regard to the St. John rental property, (2) pursuant to the oral partnership agreement, the partner who paid for an expense of the St. John rental property was entitled to the corresponding tax deduction, and (3) petitioners paid for expenses (including depreciation) in the amount of $149,230. Because petitioners have failed to provide any credible evidence of the existence of a partnership or a partnership agreement and have failed to substantiate the deductions, we sustain respondent’s determination. III. Charitable Contributions Section 170(a)(1) provides that a taxpayer may deduct “any charitable contribution * * * payment of which is made within the taxable year. A charitable contribution shall be allowable as a deduction only if verified under regulations prescribed by the Secretary.” The Secretary of the Treasury (Secretary) has issued section 1.170A-13, Income Tax Regs., to implement Congress’ legislative mandate. Section 1.170A-13(c), Income Tax Regs, provides that the taxpayer must obtain a qualified appraisal for donated property (except money and certain publicly traded securities) in excess of $5,000.11 11 Sec. 1.170A-13(c)(3), Income Tax Regs., describes the necessary requirements for a qualified appraisal.Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
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