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satisfied their burden of proving entitlement to deduct noncash
charitable contributions and excess unreimbursed employee and
other miscellaneous expenses in amounts greater than those
respondent determined.
As noted, petitioners claimed deductions on their 2002
return for charitable contributions, consisting of $3,200 in cash
and $7,753 in noncash contributions. At trial, the parties
stipulated that petitioners were entitled to a deduction of $950
for cash charitable contributions and that the $2,250 balance was
improperly claimed because the disallowed portion was made not by
petitioners but by their family members.
Respondent disallowed the $7,753 deduction for noncash
contributions for lack of substantiation. At trial, respondent
conceded that petitioners are entitled to a deduction for noncash
charitable contributions of $1,600.
Section 170 allows a deduction for charitable contributions
during the taxable year if verified as provided in the
regulations. Sec. 170(a)(1). The term “charitable contribution”
includes a contribution or gift to a corporation, trust, or
community chest, fund, or foundation, with certain provisos.
Sec. 170(c). For example, the recipient organization must have
been “created or organized in the United States or in any
possession thereof, or under the law of the United States, any
State, the District of Columbia, or any possession of the United
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