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must state the amount of cash or description of property the
taxpayer donated and a statement confirming that no consideration
was given to the taxpayer. Sec. 1.170A-13(f)(2), Income Tax
Regs. The taxpayer is required to include in the records a “good
faith estimate” as to the value of goods or property contributed
in kind. Sec. 170(f)(8)(B)(iii).
Petitioners did not establish at trial that they were
entitled to any deduction for charitable contributions. They
presented as evidence receipts that were furnished blank by
charitable organizations and admittedly filled in by petitioners.
This evidence purports to establish that, during 1999,
petitioners donated, among other things, at least 71 bags of
clothing, 4 humidifiers, 2 dehumidifiers, 4 vacuum cleaners, 6
chairs, and 25 wall fixtures. The values claimed on the returns
are, in the Court’s view, inflated and do not amount to “good
faith estimates” of the value of the donated items, nor do they
add up to the $9,250 petitioners claimed as donations other than
by cash or check. Petitioners offered little explanation as to
how they arrived at the fair market value of the items donated,
and no explanation as to how the final amount of $9,250, claimed
on their 1999 return, was calculated. The Court is not satisfied
that petitioners made any donations; therefore, the deduction of
$9,250 petitioners claimed as charitable contributions other than
cash for 1999 is disallowed.
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Last modified: May 25, 2011