Roger and Sharon Wortmann, et al. - Page 9

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          that an appraisal of the subject property be obtained.  TRRC                
          retained Keith White (Mr. White) of White Realty & Appraisal to             
          perform an appraisal of the property that was attached to TRC’s             
          information tax return, Form 1065, U.S. Partnership Return, for             
          1998.                                                                       
          Deductions at Issue                                                         
               TRY claimed a charitable contribution of $475,000 with                 
          respect to the subject property, although TRY purchased the                 
          subject property for $75,000 just 17 months before the date of              
          donation.  TRY included each petitioner husband and wife’s                  
          respective portion of this charitable contribution on their                 
          respective Schedules K-1, Partner’s Share of Income, Deductions,            
          Credits, etc., for 1998.                                                    
               Petitioners in each docket filed joint tax returns for 1998            
          and claimed their proportionate share of TRC’s $475,000                     
          charitable contribution deduction for 1998, up to the statutory             
          limit of 30 percent of adjusted gross income.  Sec. 170(b)(1)(F),           
          170(b)(1)(B)(I).  Petitioners carried forward the remaining                 
          portion of the charitable contribution and deducted portions on             
          their joint tax returns for 1999 and 2000, the years at issue in            
          this case.                                                                  
               Respondent issued deficiency notices to petitioners for 1999           
          and 2000 on September 16, 2003, in which respondent determined              
          the subject property had a value of $76,200, rather than the                
          $475,000 claimed by petitioners.  Respondent accordingly                    
          partially disallowed petitioners’ deductions for the charitable             





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