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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.
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