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deductions are strictly a matter of legislative grace, and the
taxpayer bears the burden of proving entitlement to the deduction
claimed. INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992).
We turn first to the issue presented under section 170. The
parties agree that, in order to be entitled to petitioners’
respective claimed noncash charitable contribution deductions,
petitioners must establish, inter alia, that KQC’s claimed
noncash charitable contribution to TMC on December 31, 1999, of
the improved property on Maple Street11 qualifies as a charitable
contribution under section 170(a).12 (We shall hereinafter refer
to KQC’s claimed noncash charitable contribution to TMC on
December 31, 1999, as KQC’s claimed noncash charitable contribu-
tion to TMC.) The parties also agree that, in order for KQC’s
claimed noncash charitable contribution to TMC to qualify as a
charitable contribution under section 170(a), the following
essential elements of a valid inter vivos gift (essential ele-
10(...continued)
lishing that they satisfied the applicable requirements of sec.
7491(a)(2).
11The improved property on Maple Street consisted of KQC’s
land and 1958 school building that KQC purchased in 1997 and any
improvements made by TMC to that property, including the new
building that TMC constructed thereon with HHS’s grant funds.
12Sec. 170(a) generally allows a taxpayer a deduction for
any charitable contribution, as defined in sec. 170(c), made
during the taxable year. Sec. 170(c) defines the term “charita-
ble contribution” to mean a contribution or gift to or for the
use of one or more specified organizations. The parties agree
that KQC is one of the organizations specified in sec. 170(c).
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