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Petroleum Co. v. Commissioner, 104 T.C. 584, 637 (1995), affd.
142 F.3d 442 (9th Cir. 1998).7
Six weeks after petitioners donated the van, petitioners’
van was sold for an amount almost $13,000 less than Mr. Sobrero’s
appraisal. In his appraisal, Mr. Sobrero failed to account for
the mileage of the van, which mileage, based on petitioner’s
testimony, would have been approximately 220,000 miles.
On the evidence before us, we conclude that the fair market
value of petitioners’ van on the date of its donation, for
purposes of the claimed charitable contribution deduction, was
its $6,900 sale price in December of 2000.
Section 6662(a) Negligence Penalty
Under section 6662(a), a penalty is imposed on “any portion
of an underpayment of tax required to be shown on a return” that
is attributable to negligence or to disregard of the rules or
regulations. Sec. 6662(b)(1). Respondent has asserted the
negligence penalty against petitioners with respect to the
adjustments collapsing the reported income and expenses of the
three trusts into petitioners’ income and expenses, the gain on
the sale of petitioners’ residence, and the donation of the van.
7 We note that the American Jobs Creation Act of 2004, Pub.
L. 108-357, sec. 884, 118 Stat. 1632, effective for years
beginning after 2004, added a provision in sec. 170 generally
limiting a taxpayer’s charitable deduction relating to a donation
of a vehicle to the actual sales price of the vehicle when sold
by the donee organization. Sec. 170(f)(12)(A)(ii).
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