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life estate in the office building and where the decedent’s wife
is still living when the reversionary interest passes to charity.
Section 25.2522(c)-3(c)(1)(i), Example (3), Gift Tax Regs.,
treats as a partial interest a gift to charity of the right to
rental income from real property where the remaining interest in
the property is transferred to a noncharitable donee.
Other authorities recognize and discuss the above general
rule under which charitable deductions are disallowed for gifts
to charity of partial interests.
In Stark v. Commissioner, 86 T.C. 243 (1986), we held that a
gift to the U.S. Forest Service of real property constituted a
partial interest where the donor retained a mineral interest in
the real property. The gift to charity, however, of the partial
interest was deductible because the particular restricted mineral
interest retained by the taxpayer was not regarded as
substantial. In interpreting section 170(f)(3) for income tax
purposes, we stated that the partial interest rule “applies to
contributions [to charity] of less than the taxpayer’s entire
interest in property, including, but not limited to,
contributions of the right to use property.” Id. at 250.
In Rev. Rul. 81-282, 1981-2 C.B. 78, it was held that a gift
to charity of corporate stock constituted a disallowed partial
interest where the donor retains the right to vote the gifted
stock (a gift not dissimilar from the gift to CFT of the
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