- 39 -
Ice Co. v. Helvering, 292 U.S. 435, 440 (1934); see also Rule
142(a)(1).26
Section 170(a) generally allows a taxpayer a deduction for
any charitable contribution, as defined in section 170(c), made
during the taxable year. Section 170(c) defines the term
"charitable contribution" as "a contribution or gift" to or for
the use of certain specified organizations. Respondent has not
disputed that SMF was a qualified recipient of a charitable
contribution as required by section 170(c).
If a charitable contribution is made in property other than
money, the amount of the contribution is generally the fair
market value of the property at the time of the contribution.
Sec. 1.170A-1(c)(1), Income Tax Regs. "[F]air market value" for
this purpose "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 reasonable
knowledge of relevant facts." Sec. 1.170A-1(c)(2), Income Tax
Regs. A charitable contribution is allowable as a deduction only
if verified under regulations prescribed by the Secretary, sec.
170(a)(1), including certain substantiation requirements provided
in section 1.170A-13(c)(2), Income Tax Regs. In addition, no
deduction for any contribution in excess of $250 is allowed
26 Petitioners concede that sec. 7491(a) does not apply in
this proceeding.
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