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778, which adds to the Internal Revenue Code section 170(e)(5),
which contains the term “qualified appreciated stock” and, in
pertinent part, defines that term as “any stock of a corporation
for which (as of the date of the contribution) market quotations
are readily available on an established securities market”.
The legislative history of both TRA provisions informs us
that, with respect to each, Congress’s purpose was to combat
inflated deductions resulting from the overvaluation of property
contributed to charities. In Hewitt v. Commissioner, 109 T.C.
258, 261-262, 265 (1997), affd. without published opinion
166 F.3d 332 (4th Cir. 1998), we reviewed the history of TRA
section 155 and stated:
[I]t is clear that the principal objective of * * *
[TRA] section 155 was to provide a mechanism whereby
respondent would obtain sufficient return information
in support of the claimed valuation of charitable
contributions of property to enable respondent to deal
more effectively with the prevalent use of
overvaluations.
H.R. 4170, 98th Cong., 2d Sess. (1984), is the bill that,
when enacted, included the Tax Reform Act of 1984. H. Rept. 98-
432 (Part 2) (1984) is the supplemental report of the Committee
on Ways and Means on H.R. 4170. With respect to the reason for
adding section 170(e)(5) to the Internal Revenue Code, the report
4(...continued)
to prescribe the requirements by regulation. TRA sec. 155(a)(1);
see Hewitt v. Commissioner, supra at 261-262. Sec. 1.170A-13(c),
Income Tax Regs., contains that prescription.
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