Christopher D. and Kristie M. Farran - Page 24

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               Charitable contributions a taxpayer makes are generally                
          deductible under section 170(a).  No deduction is allowed,                  
          however, for any contribution of $250 or more unless the taxpayer           
          substantiates the contribution by a contemporaneous written                 
          acknowledgment of the contribution by a qualified donee                     
          organization.7  Sec. 170(f)(8)(A).  The deduction for a                     
          contribution of property equals the fair market value of the                
          property on the date contributed.  Sec. 1.170A-1(c)(1), Income              
          Tax Regs.  The fair market value of property 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 a reasonable knowledge of relevant facts.              
          Sec. 1.170A-1(c)(2), Income Tax Regs.                                       
               A taxpayer claiming a charitable contribution is generally             
          required to maintain for each contribution a canceled check, a              
          receipt from the donee charitable organization showing the name             
          of the organization and the date and amount of the contribution,            
          or other reliable written records showing the name of the donee             

               7There are now stricter requirements for contributions of              
          money.  Sec. 170(f)(17).  No deduction for a contribution of                
          money in any amount is allowed unless the donor maintains a bank            
          record or written communication from the donee showing the name             
          of the donee organization, the date of the contribution, and the            
          amount of the contribution.  Id.  This new provision is effective           
          for contributions made in tax years beginning after Aug. 17,                
          2006.  Pension Protection Act of 2006, Pub. L. 109-280, sec.                
          1217, 120 Stat. 1080.                                                       

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