Estate of Wardwell v. Commissioner

RIDGE, Circuit Judge.

In this case the Tax Court ruled that a subscription made and paid by a taxpayer as a “room endowment” to the building fund of a charitable institution admittedly having a tax-exempt status under Section 501(c) (3) of I.R.C.1954, 26 U.S.C.A. § 501(c) (3), was not a “gift” within the ambit of Section 170 (c) (2), I.R.C.1954, 26 U.S.C.A. § 170(c) (2), because it was made with a “motive” and “expectancy” by the donor “to secure, room occupancy” and “benefits of an éeonomie nature” from the charitable institution to which the subscription was made. As a consequence the Tax…