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the residence. Mrs. Graham appealed the ruling. On November 16,
2000, in an unpublished opinion, the Court of Appeals for the
Fifth Circuit affirmed the bankruptcy court’s decision.
Respondent determined that petitioner sold the property at a
“bargain” price, resulting in a contribution to the Foundation
sufficient to make petitioner a substantial contributor.
Consequently, respondent determined deficiencies pursuant to
section 4941 and a section 6684 penalty, as set forth earlier.
OPINION
Section 4941(a)(1) imposes an excise tax on acts of self-
dealing between a private foundation and a disqualified person.
Section 4941(b)(1) imposes a second-tier tax on an act of self-
dealing that is not corrected within the taxable period. Self-
dealing transactions include sale and leases of property and
loans between a disqualified person and a private foundation, as
well as transfers of a foundation’s assets to a disqualified
person. Sec. 4941(d)(1).
Disqualified persons include substantial contributors to a
foundation, as defined in section 507(d)(2). Sec. 4946(a)(1)(A),
(2). A substantial contributor is a person who, in the
aggregate, contributed “more than $5,000 to the private
foundation, if such amount is more than 2 percent of the total
contributions * * * received by the foundation before the close
of the taxable year of the foundation in which the contribution
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