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two types of contributions: (1) Whether petitioners properly
valued the property contributions of tangible property given to
CBR, and (2) whether amounts claimed as paid to Omega’s employees
for services performed for the benefit of CBR are deductible.
Section 170(a)(1) allows a deduction for charitable
contributions (as defined in section 170(c)) made within the
taxable year. In general, the amount of a charitable
contribution made in property other than money is the fair market
value of the property at the time of the contribution. See 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
the relevant facts. See sec. 1.170A-1(c)(2), Income Tax Regs.
Fair market value is a question of fact. See Skripak v.
Commissioner, 84 T.C. 285 (1985). Petitioners have the burden of
showing their entitlement to their claimed deductions. See Welch
v. Helvering, 290 U.S. 111 (1933).
Under section 1.170A-13(b)(3), Income Tax Regs., if a
contributed item is valued at over $500, the taxpayer is required
to maintain written records showing the manner of acquisition,
the fair market value, the method used to determine the value,
and the cost or other basis. If a contributed item is valued at
over $5,000, the donor must obtain a qualified appraisal for the
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