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designed to hold interests in Beneco, which were to be
contributed to the FLPs by petitioners. The issues concerning
these contributions are whether petitioners complied with the
reporting requisites of section 170 and underlying regulations so
as to be entitled to the charitable contribution deductions. If
we find that petitioners complied with those requisites, we will
go on to consider the values of the interests contributed in
order to decide the amounts of any allowable charitable
contribution deductions.
Section 170(a)(1) provides:
There shall be allowed as a deduction any charitable
contribution * * * payment of which is made within the
taxable year. A charitable contribution shall be
allowable as a deduction only if verified under
regulations prescribed by the Secretary.
If the contribution consists of property other than cash, the
value of the contribution is generally the fair market value of
the donated property at the time of contribution. Sec. 1.170A-
1(c)(1), Income Tax Regs.
Respondent argues that petitioners are not entitled to the
noncash charitable contribution deductions claimed because they
failed to comply with the reporting requirements of section 170
and the underlying regulations. Petitioners acknowledge that
they failed to fully comply with some of the requirements for
noncash charitable contribution deductions. Petitioners argue,
however, that they are nevertheless entitled to the deductions
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Last modified: March 27, 2008