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Respondent determined a deficiency of $10,226 in
petitioner's 1994 Federal income tax.
The sole issue for decision is whether petitioner, under
section 170(a), is entitled to an itemized deduction of $55,000
for a charitable contribution resulting from the bargain sale of
a boat to a qualified tax-exempt organization in lieu of $22,960
allowed by respondent in the notice of deficiency.
Some of the facts were stipulated. Those facts and the
accompanying exhibits are so found and are incorporated herein by
reference. Petitioner's legal residence at the time the petition
was filed was Wetumpka, Alabama.
Petitioner is a franchised automobile dealer engaged in the
sale of new and used motor vehicles. At the time of trial,
petitioner had been engaged in this business 30 years.
Petitioner held a Chevrolet and Oldsmobile franchise and another
franchise for Chrysler, Plymouth, Jeep, and Dodge vehicles. This
latter franchise was located at Troy, Alabama.
On March 1, 1991, petitioner purchased at public auction a
pleasure boat for $53,500.2 The boat was a 1989 model Sea Ray
2 There is a conflict in the evidence as to the date
petitioner purchased the boat. The written stipulation and
petitioner's tax return for 1994 state the date of purchase was
March 1, 1991; however, at trial, petitioner testified he
purchased the boat in December 1991. The difference in dates is
not material to deciding the issue. In addition, there is a
conflict in the evidence as to the amount petitioner paid for the
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