Theodore R. Rolfs and Julia A. Gallagher v. Commissioner

Gale, Judge:

Respondent determined a deficiency of $19,940 in petitioners’ Federal income tax for 1998 and an accuracy-related penalty equal to 20 percent of the underpayment under section 6662(a). By their amended petition, petitioners aver that they are entitled to a charitable contribution deduction of $235,350, rather than the $76,000 claimed on their return, as a result of a donation of a house to a local volunteer fire department, resulting in an overpayment of $39,672 for 1998. By answer to the amended petition, respondent asserts that petitioners are liable for a penalty under section…