- 5 - valued the boat at $500, with most of the value attributable to the trailer. After obtaining the appraisal, The Salvation Army’s local corps commander determined the sales price for the boat. The boat was subsequently sold by The Salvation Army for $500. C. Petitioners’ Income Tax Return On October 10, 1997, petitioners filed a Form 1040, U.S. Individual Income Tax Return, for 1996. On their 1996 return, petitioners claimed noncash charitable contributions of $100,000 for the Winter Haven property and $10,000 for the boat. Petitioners attached the second page of two Forms 8283, Noncash Charitable Contributions, to their 1996 return. The second page of the Form 8283 for the Winter Haven property listed the appraised fair market value as $200,000, specified the appraisal date as January 1, 1997, and was signed by the pastor of Community Church as the appraiser. The second page of the Form 8283 for the boat listed the fair market value as $10,000 and was not signed by an appraiser. Petitioners’ 1996 return was prepared by Mr. Nunez. Mr. Nunez had prepared petitioners’ income tax returns for nearly 40 years. As previously noted, Mr. Nunez advised petitioners of the part sale/part gift arrangement with respect to the Winter Haven property. Mr. Nunez was not aware of the contribution of the boat until he obtained information from petitioners necessary toPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011