- 58 -
transaction with SMF was less than the value of what they
transferred. Thus they have not shown that the transfers of the
intangible assets of their medical practices were without adequate
consideration. "The sine qua non of a charitable contribution is
a transfer of money or property without adequate consideration."
United States v. Am. Bar Endowment, 477 U.S. at 118; see also
Transamerica Corp. v. United States, 902 F.2d at 1545-1546.36
B. Respondent's Duty of Consistency
Petitioners also argue that the Commissioner has previously
taken the position in rulings and other guidance covering similar
transfers of group medical practice assets to nonprofit health
care organizations that charitable contribution deductions for the
transferors are appropriate and that respondent is therefore bound
to follow that position in this case. Petitioners cite the
Friendly Hills determination letter and several of the
Commissioner's annual Exempt Organizations Continuing Professional
Education Technical Instruction Program manuals (instruction
manuals) wherein the Commissioner indicated that a section
501(c)(3) organization could acquire the assets of a group medical
practice through purchase or through a charitable donation by the
group's physicians without jeopardizing the acquiring
36 Because we conclude that petitioners have failed to
demonstrate that they transferred property worth more than what
they received in return, we do not decide whether the claimed
deductions should be denied because petitioners failed to comply
with the requirements of sec. 1.170A-13, Income Tax Regs., and
sec. 170(f)(8).
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