Jin Xiong - Page 17

                                       - 16 -                                         
          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.                                                   

Page:  Previous  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next 

Last modified: November 10, 2007