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cash or check”, petitioner attached to his return Form 8283,
Noncash Charitable Contributions. On that form, petitioner
identified United Cancer Research Society of Palm Springs,
California, as the donee and described the donated property as
“clothing, furniture, books, misc.” having a cost or adjusted
basis of $36,000.5
G. The Notice of Deficiency
In the notice of deficiency, respondent determined that
petitioner’s “health, wealth and healing ministry” activity was
not an activity engaged in for profit. Respondent also
determined that petitioner failed to substantiate the expenses
claimed on his Schedule C for 1997 and that such expenses were
personal and not ordinary and necessary business expenses.
In addition, respondent determined that petitioner is not
entitled to a deduction for 1997 for charitable contributions.
However, at trial, respondent conceded that petitioner was
entitled to a $1,500 deduction for that year.
Finally, respondent determined that petitioner is liable for
the accuracy-related penalty under section 6662(a) for negligence
or intentional disregard of rules or regulations for each year.
5 On a Schedule A for 1996, petitioner also claimed noncash
gifts to United Cancer Research Society, describing the donated
property as “clothing, books, housewares, TV, misc.” having a
cost or adjusted basis of $12,000. Petitioner also claimed on
his 1996 Schedule A a carryover of charitable contributions “from
prior year” in the amount of $68,396.
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Last modified: May 25, 2011