Gerald A. and Henrietta V. Rauenhorst - Page 9




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          no genuine issue as to any material fact relevant to the issues             
          involved.  Elec. Arts, Inc. v. Commissioner, 118 T.C. 226, 238              
          (2002).  The moving party has the burden of proving that no                 
          genuine issue of material fact exists and that party is entitled            
          to judgment as a matter of law.  FPL Group, Inc. & Subs. v.                 
          Commissioner, 116 T.C. 73, 74-75 (2001).  In all cases, the                 
          evidence must be viewed in the light most favorable to the                  
          nonmoving party.  Bond v. Commissioner, 100 T.C. 32, 36 (1993).             
          A partial summary adjudication may be made even though all the              
          issues are not disposed of.  Rule 121(b); Turner Broad. Sys.,               
          Inc. & Subs. v. Commissioner, 111 T.C. 315, 323-324 (1998).                 
          B. Charitable Contributions of Appreciated Property                         
               This case involves a charitable gift of appreciated                    
          property; namely, warrants to purchase stock at a set price.4  It           
          is well established that “A gift of appreciated property does not           
          result in income to the donor so long as he gives the property              
          away absolutely and parts with title thereto before the property            


               4Charitable contributions of appreciated property typically            
          give rise to a deduction equal to its fair market value; however,           
          the deduction for capital gain property is generally limited to             
          30 percent of the taxpayer’s adjusted gross income.  Sec.                   
          170(a)(1), (b)(1)(C)(i), (F); sec. 1.170A-1(c)(1), Income Tax               
          Regs.  On their Form 1040, U.S. Individual Income Tax Return, for           
          1993, petitioners claimed a charitable deduction of $5,304,530 in           
          accordance with a valuation report they submitted with their                
          return.  Respondent raises as an amendment to his answer an issue           
          regarding the correct amount of the charitable deduction that               
          petitioners claimed for 1993.  Petitioners concede that issue               
          cannot be decided on a summary judgment motion.                             






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