Lio v. Commissioner
United States Tax Court
Ps each purchased a substantial number of unframed lithographs. After holding them for the period required for long-term capital gain treatment, Ps donated substantially all the lithographs to charitable organizations. Held, Ps were the ultimate consumers of the lithographs, and the market in which they purchased the lithographs is the appropriate market in which to value them for purposes of the charitable contribution deduction.
1Opinion of the Court
Simpson, Judge:
The Commissioner determined the following deficiencies in, and additions to, the petitioners’ Federal income taxes:
Addition to tax
Taxable sec. 6653(a),
Petitioners year Deficiency I.R.C. 19541
Peter J. and Catherine A. Lio 1977 $19,732 $987
David H. and Barbara A. Orth 1979 16,389 ---
After concessions, the issues presented for our consideration are: (1) Whether the determination of the fair market value of lithographs which the petitioners purchased in large quantities and donated to charities is to be based on the marketplace in which the petitioners purchased such lithographs,…
2Cases cited14 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- United States v. CartwrightSupreme Court of the United States · 1973
- George v. Zmuda and Walburga Zmuda v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1984
- Zmuda v. CommissionerUnited States Tax Court · 1982
- Chiu v. CommissionerUnited States Tax Court · 1985
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