- 6 -
* * * is received by the foundation from such person.” Sec.
507(d)(2)(A); Dupont v. Commissioner, 74 T.C. 498, 502 (1980).
Contributions are valued at their fair market value when received
by the foundation. Sec. 507(d)(2)(B)(i); sec. 1.507-6(c)(2),
Income Tax Regs.
Respondent contends that the sale was completed on November
10, 1992, for $250,000; the difference between the fair market
value of the residence and the consideration petitioner received
for such residence was a contribution to the Foundation; and, as
a result, petitioner is a substantial contributor to the
Foundation, liable for first- and second-tier excise taxes
pursuant to section 4941. Petitioner contends that he lacked
donative intent and, thus, was not a substantial contributor.
Petitioner further contends that the consideration for the sale
included the initial $250,000, the subsequent payment of
$135,000, and 3 years of rent-free occupation of the residence.
We agree with the bankruptcy court and respondent that the
sale was completed on November 10, 1992, when the residence was
transferred to the Foundation. We, however, agree with
petitioner that the consideration for the sale included the
initial payment made on November 10, 1992, the subsequent payment
made on June 3, 1993, and the 3-year period of rent-free
occupation of the residence.
Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011