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3. Charitable Contributions
Petitioner argues that the expenses connected to the
residence are deductible as charitable contributions to the
extent that they benefited the Foundation. Respondent argues
that petitioner may not deduct any of these expenses in that he
does not have a written acknowledgment from the Foundation as to
them.
We agree with respondent that none of the expenses are
deductible given the absence of a written acknowledgment. Under
section 170(f)(8)(A), an individual taxpayer may deduct a
contribution of $250 or more only if he or she substantiates the
deduction with a contemporaneous written acknowledgment that
meets the requirements of that section. See also Addis v.
Commissioner, 118 T.C. 528, 533-534 (2002). That acknowledgment,
which must be furnished by the donee organization, must state the
amount of cash and describe other property contributed, indicate
whether the donee organization provided any goods or services in
consideration for the contribution, and provide a description and
good faith estimate of the value of any goods or services
provided by the donee organization. Sec. 170(f)(8)(B); see also
sec. 1.170A-13(f)(5), Income Tax Regs. (goods or services include
cash, property, services, benefits, and privileges). Given that
petitioner does not have such a written acknowledgment from the
Foundation as to the disputed expenses, we conclude that he is
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Last modified: May 25, 2011