Tax Court Takes Hard Line on Charitable Deduction Rules

A taxpayer who receives goods or services in exchange for a contribution of property may still be entitled to some deduction if the contribution exceeds the fair market value of any goods or services received.

But in the case of Seventeen Seventy Sherman Street, LLC (TC Memo 2014-124) the Court found that when a taxpayer fails to identify  or value all of the consideration received in the transaction, the taxpayer is not entitled to any charitable contribution deduction because of failure to comply with the regulations in this area.  The burden is on the taxpayer to demonstrate the excess of the value of the property given away over the value of consideration received.