In field service advice, the IRS has determined that further factual development is necessary to determine if a company is entitled to deduct the fair market value of contract rights given to a charity.   MORE »

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In field service advice, the IRS has concluded it needs more information to determine whether taxpayers may deduct a contribution of a portion of their cooperative housing shares and a proprietary lease to rent their cooperative apartment to a public charity. This is must reading for beginning gift planners and great review for experienced planners alike as this 35-page document provides concise descriptions and case law regarding the partial interest rule, assignment of income and step transaction doctrines, valuation issues, and application of the Section 121 capital gain exclusion.   MORE »

Can a simple a trust whose governing instrument does not authorize the trustee to make charitable contributions claim a charitable deduction for its distributive share of a charitable contribution made by a partnership, in which the trust is a partner? In field service advice, the Service says yes provided certain conditions are met.   MORE »

In Field Service Advice 1995-4, released today, the Service advised that a grocery chain could not take a charitable income tax deduction equal to the full retail price of fresh bread for donations of four-day old bread to food banks.   MORE »

In Field Service Advice 200022005, the IRS recommended rejection of a proposed settlement agreement involving the invasion of a charitable remainder trust to pay the donor's federal tax liability.   MORE »

In FSA 1999-1174, the National Office of the Service held that an estate tax charitable deduction should be denied because (i) the decedent did not have a primarily charitable intent, but rather intended the estate's residue to pass to a particular entity in all events, (ii) no assurance could be made that the trustee would not divert the assets to the particular entity given his relationship with the decedent, (iii) the statute and regulations contemplate that a qualifying charity actually receive the bequest, and (iv) a deduction is permitted only for the value of that portion of the residue of the estate, determined as of the date of death, which the trustee actually distributes to charity.   MORE »

In apparently related FSA's (FSA 1999-1193 and FSA 1999-1172), the Service (i) disallowed an income tax deduction for a payment from the estate's income to an entity which was not a qualified charity, and (ii) held that the estate does not qualify for a charitable deduction because (A) there was more than a negligible possibility that the bequest will pass to a nonqualifying entity, and (B) section 2055(e) of the Code disallows a deduction for a split interest in property, where such property is bequeathed to a qualifying charity and a nonqualifying entity received income in the property, not in a qualifying split interest format.   MORE »

In an undated Field Service Advice, the IRS holds that a contribution of a facade easement in real property, which does not otherwise qualify as a certified historic structure, qualifies for deduction as an open space easement based on the fact the Gift Deed prohibits either vertical or horizontal additions to the property.   MORE »

In FSA 1999-1070, the Service, quoting Hernandez v. Commissioner, 490 U.S. 680 (1989), held that tuition payments to a religious school are not deductible under section 170 of the Code because the Taxpayers received a substantial benefit on account of the payments.   MORE »