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Respondent’s Adjustments
In determining the deficiencies here in question, respondent
disallowed all of the deductions claimed by petitioners on
account of the transfer except for $33,338 (petitioner’s cost
basis in the shares), which respondent allowed for 1994.
Respondent explained his disallowance on the basis that
petitioners had failed to establish that any of the amounts
disallowed met the requirements of section 170, which allows a
deduction for charitable contributions.
OPINION
I. Introduction
On December 27, 1994 (the transfer date), petitioner
transferred 6,350 shares of Bancorp (the shares) to the
foundation, claiming charitable contribution deductions on
account thereof on petitioners’ 1994 through 1997 income tax
returns. Respondent disallowed all those deductions except that
he allowed a charitable contribution deduction equal to
petitioner’s cost basis in the shares, $33,338, for 1994.
Petitioners have assigned error to respondent’s determination of
deficiencies to the extent that respondent disallowed
petitioners’ claimed charitable deductions (the disallowed
deductions). In support of their assignment of error,
petitioners aver: “Pursuant to I.R.C. �� 170(a) and 170(e)(5)(A)
and (B), Petitioners properly took the charitable deduction to
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Last modified: May 25, 2011