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the MLR easement's having a fair market value of $839,680 in 1993
(i.e., $2,624,000 fair market value before the easement x 32
percent). However, because the "before" fair market value of
petitioner's property is not the same as petitioner's cost basis
in the property, the charitable contribution deduction related to
the MLR easement is limited by section 170(e)(1)(A).
Section 170(e)(1)(A) limits the amount that may be deducted
as a charitable contribution under section 170(a). It provides
that charitable contributions must be reduced by the amount of
gain that would not have qualified as long-term capital gain if
the donated property had been sold at its fair market value on
the date of the donation. See sec. 170(e)(1)(A).
The allowable charitable contribution deduction for ordinary
income property is limited to the basis of the property donated.
See Lary v. United States, 787 F.2d 1538, 1540 (11th Cir. 1986);
Glen v. Commissioner, 79 T.C. 208, 212 (1982); Morrison v.
Commissioner, 71 T.C. 683, 688 (1979), affd. per curiam 611 F.2d
98 (5th Cir. 1980). Because the MLR easement does not satisfy
the long-term capital gain holding period, i.e., petitioner
donated the easement on September 9, 1993, less than 1 year after
she purchased the property on September 15, 1992, the MLR
easement is treated as ordinary income property. See secs.
170(e)(1)(A), 1222(3) and (4). Therefore, the amount of
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