Lawrence K. and Ruth L. Harrell - Page 5

                                        - 4 -                                         
         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             






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  Next

Last modified: May 25, 2011