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Waller v. Commissioner, 39 T.C. 665, 677 (1963); sec. 1.170A-
4(c)(2), Income Tax Regs.
In order for a bargain sale to constitute a charitable
contribution, the seller must make the sale with the requisite
charitable intent, and the fair market value of the property on
the date of the sale must in fact exceed the selling price. See
United States v. American Bar Endowment, 477 U.S. 105, 118 (1986)
(“The sine qua non of a charitable contribution is a transfer of
money or property without adequate consideration. The taxpayer,
therefore, must at a minimum demonstrate that he purposely
contributed money or property in excess of the value of any
benefit he received in return.”). Further, for the contribution
to be deductible, the taxpayer must place the donated property
beyond his or her control during the requisite tax period. See
Stark v. Commissioner, supra at 257.
Respondent concedes that a gift to the Church is a
charitable contribution. Respondent also concedes that
petitioners had the requisite charitable intent. The only issue
before the Court is whether petitioners' entry into the contract
for deed effected a completed gift of the property during the
requisite tax period. Resolving the issue involves answering two
interrelated questions. First, was the interest conveyed
sufficient to constitute a completed gift? Second, when were the
sale and gift completed?
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