Pasqualini v. Commissioner
United States Tax Court
Ps bought property at a U.S. Customs Service auction. Ps held the property for more than 1 year and then donated it to an organization tax exempt under sec. 501(c)(3), I.R.C. Sec. 170(e)(1)(A), I.R.C., limits a taxpayer's charitable contribution deduction when any gain received by the taxpayer would not have been long-term capital gain if the taxpayer had sold the property at its fair market value.
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Ps bought property at a U.S. Customs Service auction. Ps held the property for more than 1 year and then donated it to an organization tax exempt under sec. 501(c)(3), I.R.C. Sec. 170(e)(1)(A), I.R.C., limits a taxpayer's charitable contribution deduction when any gain received by the taxpayer would not have been long-term capital gain if the taxpayer had sold the property at its fair market value. Held, in deciding whether the limitation of sec. 170(e)(1)(A) applies to the property donated by Ps, we apply the factors used to decide whether the property is a capital asset under sec. 1221(1),…
1Opinion of the Court
Colvin, Judge:
Petitioners in these consolidated cases claimed charitable contribution deductions for the donation of a total of 180,000 Christmas cards to Catholic Charities. Respondent disallowed those deductions and determined income tax deficiencies, with additions to tax and increased interest as reflected in the appendix, infra. After concessions and our opinion in Pasqualini v. Commissioner, T.C. Memo. 1994-323, filed today, the sole issue for decision is whether, if petitioners had sold the Christmas cards, the gain would have been ordinary income, thus reducing petitioners’ charitable…
2Cases cited16 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Stubbs, Overbeck & Associates, Inc. v. United StatesCourt of Appeals for the Fifth Circuit · 1971
- Walter H. Kaltreider and Irene C. Kaltreider v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1958
- Stark v. CommissionerUnited States Tax Court · 1986
- Kaltreider v. CommissionerUnited States Tax Court · 1957
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3Cited by11 opinions
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- Van Zelst v. CommissionerUnited States Tax Court · 1995
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