- 114 -
charitable organization 9 months later, claiming a
charitable deduction of approximately three times the
amount paid, and in Goldstein v. Commissioner, 89 T.C. 535
(1987), the taxpayers purchased posters and other art and
donated them to a charitable organization 4 days later,
claiming a charitable deduction of approximately twice the
present value of the consideration paid. The taxpayers in
each case asked us to value the property by looking to the
prices charged by galleries and dealers to their retail
customers. In defining the appropriate market and the
ultimate consumer for the property in those cases, we gave
particular attention to three factors: (1) Whether the
buyers purchased the item of property for resale; (2)
whether the buyers received special discounts in the
purchase price; and (3) whether the sellers made
substantial sales of the same type of property. See id.
at 545-546. We found that the taxpayers had not purchased
the property for resale, they had received no special
discounts, and they had purchased from dealers who were
responsible for a substantial portion of the total retail
sales of the property. Thus, contrary to the taxpayers'
position, we found that the appropriate market for valuing
the property at issue in both cases was the market in which
the taxpayers had purchased the property, and that the
Page: Previous 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 NextLast modified: May 25, 2011