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produced one receipt for a $100 cash were in “good used condition or better,” on the disallowance. The court also
donation, for which the court allowed as required by Sec. 170(f)(16)(a); conse- was asked to consider whether the
a deduction. quently, the IRS limited her deduction taxpayer met the exception in
In Scholz, the issues included $5,290 to $500. The Tax Court sustained this Sec. 170(f)(11)(A)(ii)(II) despite the
cash charitable contributions and treatment, noting that her testimony failure to meet substantiation require-
$4,441 noncash charitable contribu- regarding the poor condition of the ments if “it is shown that the failure to
tions reported on the taxpayer’s 2016 rental property weakened any idea meet such requirements is due to rea-
income tax return.30 The IRS allowed that the donated items were in good sonable cause and not willful neglect.”
$2,645 of the cash gifts, but the tax- used condition. Reasonable cause is determined
payer did not produce documentation In Furrer, married taxpayers/farmers based on the facts and circumstances of
to support the additional $2,645 deduc- formed charitable remainder annuity the situation. In this case, the taxpayer
tion claimed; therefore, the Tax Court trusts to which they donated agricultural claimed that he relied on his tax pre-
upheld the IRS’s disallowance of that crops.32 The IRS denied charitable con- parer’s advice that it was unnecessary to
portion. The noncash charitable con- tribution deductions for the donations include either a fully completed Form
tributions included a $1,000 deduction because the taxpayers failed to meet the 8283 or a qualified appraisal with his
for a vehicle donated to a charitable substantiation requirements. For gifts tax return. The court found no evidence
organization and $3,441 in food do- of property (other than publicly traded to support this assertion. It noted that
nated to homeless students. The vehicle securities) valued in excess of $5,000, even if the tax preparer had supplied
donation was not supported by the the taxpayer generally must obtain such advice, the taxpayer could not have
documentation required for a donation a qualified appraisal of the property reasonably relied on it in good faith
of property valued over $500. Specifi- and attach to the return on which the since the taxpayer was an experienced
cally, there was no written acknowledg- deduction is claimed a fully completed art donor familiar with Form 8283
ment from the donee organization, no appraisal summary on Form 8283, and its requirements. Consequently,
information on the manner and date Noncash Charitable Contributions.33 The the court determined that the taxpayer
of acquisition, and no cost basis for taxpayer must also maintain records did not qualify for the reasonable-
the vehicle. The IRS allowed a $500 substantiating the deduction. The cause exception.
deduction for the vehicle donation, and taxpayers did not secure an appraisal,
the Tax Court agreed. The deduction attach completed Forms 8283 to their Sec. 170(f)(12): Contributions
for food donated to homeless students returns, or maintain written records of used motor vehicles, boats,
was disallowed because cash and other supporting the deduction, and the Tax and airplanes
items given directly to individuals for Court upheld the IRS’s determination. In Izen, the Fifth Circuit upheld the Tax
their personal benefit are not deductible Court’s decision that the taxpayer was
charitable contributions under Sec. 170, Sec. 170(f)(11): Qualified not entitled to a charitable contribution
since they are not given to or for the appraisal and other deduction for the donation of his 50%
use of a charitable organization. documentation for certain interest in an aircraft to an aeronauti-
In Rau, the court considered the contributions cal heritage society because he did not
taxpayer’s claimed $9,010 of noncash In Schweizer, the taxpayer was an art provide a contemporaneous written
charitable contributions for household dealer/auction director who donated acknowledgment that satisfied the
items donated to Goodwill Industries.31 a sculpture to an art institute and requirements of Sec. 170(f)(12)(B).35
The household items came from her claimed a $600,000 deduction for the For a donation of a qualified vehicle,
residential rental property, which had gift on his 2011 income tax return.34 including an airplane, the value of which
been rented to college students for The IRS disallowed the deduction exceeds $500, the taxpayer must provide
several years and, by her testimony, had because the Form 8283 attached to the a contemporaneous written acknowledg-
fallen into significant disrepair. The return was incomplete, and no qualified ment from the donee organization of
taxpayer did not present convincing appraisal was obtained or provided. The the contribution, including the donor’s
evidence that the items she donated Tax Court affirmed the IRS’s position name and TIN. An acknowledgment

30. Scholz, T.C. Summ. 2022-5. 33. See Sec. 170(f)(11).
31. Rau, T.C. Summ. 2022-4. 34. Schweizer, T.C. Memo. 2022-102.
32. Furrer, T.C. Memo. 2022-100. 35. Izen, 38 F.4th 459 (5th Cir. 2022).

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