Deduction Denied
Good intentions do not replace a qualified appraisal.
by Mark Lee Levine, CCIM, JD, LLM (tax)
In the recent case of Joseph Mohamed Sr., et. ux. v. Commissioner, T.C. Memo 2012-52, the U.S. Tax Court determined that a taxpayer and his spouse, after making almost $20 million worth of charitable real estate gifts to qualified charitable recipients, could not take the $18.5 million tax deduction for the gifts.
The reason is a failure to follow Internal Revenue Code regulations and use a qualified appraiser. As this case illustrates, in charitable contributions of this size, if such steps are not properly undertaken, there can be a complete loss of the deduction. Continue reading “Good intentions do not replace a qualified appraisal, by Mark Lee Levine”