-11-
Commissioner’s reasonable requests. Sec. 7491(a)(2)(A) and (B).7
Here, both parties have presented evidence and introduced expert
witness reports. We therefore decide the case based on the
preponderance of evidence without regard to the burden of proof.
See Blodgett v. Commissioner, 394 F.3d 1030 (8th Cir. 2005),
affg. T.C. Memo. 2003-212; Polack v. Commissioner, 366 F.3d 608,
613 (8th Cir. 2004), affg. T.C. Memo. 2002-145.
II. Rules on Valuation
We next address the value of the subject property at the
date of contribution to the charitable organization to determine
the charitable contribution deduction amount. Section 170
generally permits a deduction for contributions made to
charitable institutions, subject to restrictions not at issue
here. With respect to a contribution of property other than
money, the amount of the contribution is the fair market value of
the property at the time of contribution. Sec. 1.170A-1(c)(1),
Income Tax Regs. Fair market value is the price at which the
property would change hands between a willing buyer and a willing
seller, neither being under any compulsion to buy or sell and
both having reasonable knowledge of relevant facts. Sec. 1.170A-
1(c)(2), Income Tax Regs.
7Sec. 7491 is effective with respect to court proceedings
arising in connection with examinations by the Commissioner
commencing after July 22, 1998, the date of enactment of the
Internal Revenue Service Restructuring and Reform Act of 1998,
Pub. L. 105-206, sec. 3001(a), 112 Stat. 726.
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