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Deductions are a matter of legislative grace, and a taxpayer
must satisfy the specific statutory requirements for the
deductions he claims. Deputy v. duPont, 308 U.S. 488 (1940); New
Colonial Ice Co. v. Helvering, 290 U.S. 435 (1934). A taxpayer
bears the burden of proving entitlement to deductions claimed.
Rule 142 (a); Welch v. Helvering, 292 U.S. 111 (1933). These
rules apply to deductions claimed for charitable contributions.
See Davis v. Commissioner, 81 T.C. 806, 815 (1983), affd. without
published opinion 767 F.2d 931 (9th Cir. 1985).
In order to claim a charitable contributions deduction, a
taxpayer must establish that a gift was made to a qualified
entity organized and operated exclusively for an exempt purpose,
no part of the net earnings of which inures to the benefit of any
private individual. Sec. 170(c)(2). Therefore, the Court must
first examine whether the Center, the recipient of the bulk of
petitioner’s contributions,4 was a “qualified entity” under
section 170.
Qualified entities under section 170 are generally
organizations that qualify for an exemption under section
501(c)(3). See, e.g., Dew v. Commissioner, 91 T.C. 615, 623
4Petitioner introduced at trial evidence that he contributed
approximately $100 to various other charitable organizations.
Furthermore, petitioner testified that he contributed even
greater amounts to these charitable organizations during each of
the years at issue. The Court is satisfied that he did not make
such contributions, and, if he did, petitioner did not establish
whether they were made to qualified charitable organizations.
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Last modified: May 25, 2011