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Set forth below, in part, is the statutory language of
section 2522(c)(2) that, for Federal gift tax purposes, generally
disallows charitable deductions for gifts to charity of partial
interests:
SEC. 2522(c). Disallowance of Deductions in Certain Cases.--
* * * * * * *
(2) Where a donor transfers an interest in property
(other than an interest described in section 170(f)(3)(B))
to a person, or for a use, described in subsection (a) or
(b) [qualified charities] and an interest in the same
property is retained by the donor, or is transferred or has
been transferred (for less than an adequate and full
consideration in money or money’s worth) from the donor to a
person, or for a use, not described in subsection (a) or
(b), no deduction shall be allowed under this section for
the interest which is, or has been transferred to the
person, or for the use, described in subsection (a) or (b)
* * *
Treasury regulations applicable to the above statutory
provisions provide examples of charitable gifts of partial
interests subject to the above disallowance rule. Section
1.170A-7(d), Example (1), Income Tax Regs., treats as a partial
interest a gift to charity of the rent-free use of one floor of
an office building where the donor owns the entire office
building.
Section 20.2055-2(e)(2)(i), Estate Tax Regs., classifies as
a partial interest a gift to charity of a reversionary interest
in an office building where the decedent transfers to his wife a
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