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helpful in carrying on a trade or business. Heineman v.
Commissioner, 82 T.C. 538, 543 (1984).
Under section 164, a taxpayer may deduct State and local
real property and income taxes paid or accrued during the taxable
year. A real property tax is one that is imposed upon real
property to benefit the general public welfare. Sec. 1.164-3(b),
Income Tax Regs. A State or local tax is one that is imposed by
a State, by a possession of the United States, by a political
subdivision of either, or by the District of Columbia. Sec.
1.164-3(a), Income Tax Regs.
Section 170 allows a deduction for charitable contributions
made to qualifying organizations. A taxpayer claiming a
charitable deduction of money must maintain a copy of the
donation check, a receipt of the donation by the donee
organization, or some other reliable written evidence of
donation. Sec. 1.170A-13(a)(1), Income Tax Regs. Contributions
of property require, at a minimum, a receipt by the donee
including the name of the donee, the date and location of the
donation, and a reasonable description of the property donated.
Sec. 1.170A-13(b). Where it is unrealistic to obtain a receipt,
the taxpayer must maintain reliable written records of his
contributions. See id.
All deductions, however, are a matter of legislative grace,
and the taxpayer must clearly demonstrate entitlement to the
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Last modified: May 25, 2011