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than fair market value (i.e., makes a “bargain sale”) to a
charity is typically entitled to a charitable contribution
deduction equal to the difference between the fair market value
of the property interest and the amount realized from the sale.
See Stark v. Commissioner, 86 T.C. 243, 255-256 (1986); Musgrave
v. Commissioner, T.C. Memo. 2000-285; sec. 1.170A-4(c)(2), Income
Tax Regs. A charitable contribution is allowed as a deduction,
however, only if verified under regulations prescribed by the
Secretary. Sec. 170(a)(1); Stark v. Commissioner, supra at 256.
In 1984, Congress enacted section 155 of the Deficit
Reduction Act of 1984 (DEFRA), Pub. L. 98-369, 98 Stat. 691.
DEFRA section 155 instructs the Secretary to prescribe heightened
substantiation requirements for certain noncash charitable
contributions. DEFRA section 155 provides that the regulations
shall require the taxpayer: (1) To obtain a qualified appraisal
of the property; (2) to attach an appraisal summary to the tax
return on which the deduction is claimed; and (3) to include on
the tax return such additional information as the Secretary may
prescribe. DEFRA section 155 provides the following definitions:
5(...continued)
contribution). Because we shall grant respondent’s motion for
partial summary judgment, we need not decide whether the sale of
development rights to DALPF constitutes a qualified conservation
contribution.
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