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constituted a separate trade or business, the section 179
deduction would not be allowable because petitioner did not have
any income from the sale of the book in 2003.8 Respondent
properly disallowed the claimed deduction under section 179.
Petitioner claimed a deduction of $7,250 for charitable
contributions--$7,050 of which was for contributions of property
and $200 was for cash contributions. Respondent disallowed all
of the deduction for cash contributions and all but $500 of the
deduction for contributions of property.
Section 170 allows a deduction for charitable contributions
during the taxable year if they are verified as provided in the
regulations. Sec. 170(a)(1). No deduction is allowed for any
contribution of $250 or more unless the taxpayer substantiates
the contribution by a contemporaneous written acknowledgment of
the contribution by the qualified donee organization. Sec.
170(f)(8)(A). This written acknowledgment must state the amount
of cash and a description (but not necessarily the value) of any
property other than cash the taxpayer donated and whether any
consideration was given to the taxpayer. Sec. 1.170A-13(f)(2),
Income Tax Regs.
8Furthermore, petitioner failed to substantiate the portion
of the use of the vehicle that could be attributed to business
rather than personal use.
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Last modified: November 10, 2007