- 9 -
disallowing all of the deductions claimed on the Schedules C are
sustained.
B. Charitable Contribution Deductions
Petitioners claimed charitable contribution deductions of
$8,382 and $10,827, for 1995 and 1996, respectively, on the
Schedules A included with their returns for those years. For
each year, they indicated that the contributions were made in
cash; but at trial, they claimed that some contributions
consisted of donations of personal property and some portion of
the deductions was attributable to transportation expenses.
In general, a taxpayer is allowed to deduct any
contributions or gifts made to qualifying organizations for their
use. See sec. 170(a). Subject to various exceptions, if
property other than money is donated, “the amount of the
contribution is the fair market value of the property at the time
of the contribution”. Sec. 1.170A-1(c)(1), Income Tax Regs.
Fair market value is defined as “the price at which the property
would change hands between a willing buyer and a willing seller,
neither being under any compulsion to buy or sell and both having
reasonable knowledge of relevant facts.” Sec. 1.170A-1(c)(2),
Income Tax Regs.
Section 1.170A-13(a)(1), Income Tax Regs., requires that
charitable contribution deductions be substantiated by at least
one of the following:
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011