Withers v. Commissioner
United States Tax Court
Petitioners contributed corporate stocks to a qualified charity having bases for gain or loss exceeding fair market values. Held, the charitable contribution deduction under sec. 170, I.R.C. 1954, is limited to the fair market values of the shares contributed.
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Petitioners contributed corporate stocks to a qualified charity having bases for gain or loss exceeding fair market values. Held, the charitable contribution deduction under sec. 170, I.R.C. 1954, is limited to the fair market values of the shares contributed. It is further held that, although petitioners "realized" a loss on the difference between the aggregate fair market value and aggregate basis of the shares contributed, that loss was not "sustained" under sec. 165(a) and is not "recognized" under sec. 165(c).
1Opinion of the Court
OPINION
Goffe, Judge:
The Commissioner determined a deficiency in petitioners’ Federal income tax for the taxable year 1973 in the amount of $3,811.58. Due to concessions, two issues remain for our decision:(1) Whether petitioners’ charitable contribution of stock having a basis in excess of fair market value will support a charitable contribution deduction pursuant to section 170,1.R.C. 1954,1 equal in amount to petitioners’ basis in the stock; and(2) Alternatively, whether the same contribution will support both a loss deduction under section 165 and a charitable contribution deduction under…
2Cases cited10 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- United States v. General Shoe CorporationCourt of Appeals for the Sixth Circuit · 1960
- Estate of Wood v. CommissionerUnited States Tax Court · 1962
- International F. Corp. v. Commissioner of Int. Rev.Court of Appeals for the Second Circuit · 1943
- Smith v. CommissionerUnited States Tax Court · 1971
5 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Guest v. CommissionerUnited States Tax Court · 1981
- Guest v. CommissionerUnited States Tax Court · 1981
- Jennings v. CommissionerUnited States Tax Court · 1988
- Withers v. CommissionerUnited States Tax Court · 1978