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contributions in 1994 were not made “to” a qualified
organization, and they were not made “for the use of” such an
organization within the meaning of the statute because there was
no trust-like arrangement creating legally enforceable rights for
the organization. See Davis v. United States, supra. Although
petitioners’ actions may have been entirely altruistic and
intended to benefit FGBMFI, the contributions are not deductible
for Federal income tax purposes. Petitioners are not entitled to
a charitable contribution deduction for 1994 in excess of $1,665.
The second issue for decision is whether petitioners must
include in income gain on the sale of certain property in 1993.
Under sections 61(a) and 1001(c), taxpayers generally must
recognize in the year of sale all gain or loss realized upon the
sale or exchange of property.
Respondent determined that petitioner recognized gain of
$28,462 on the sale of a 1989 Kenworth tractor and 1991
Transcraft flatbed trailer. According to respondent’s trial
memorandum, the gain was determined as follows (petitioner
disputes this calculation):
Tractor Trailer
Sales price $28,843 $9,157
Cost $60,000 $19,050
Depreciation (57,777) (11,735)
Adjusted basis (2,223) (7,315)
Recognized gain26,620 1,842
Thus, respondent determined the total sales price for tractor and
trailer to be $38,000. Respondent has conceded that the total
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