Section 170(e)(1) and this paragraph do not apply to reduce the amount of the charitable contribution where, by reason of the transfer of the contributed property, ordinary income or capital gain is recognized by the donor in the same taxable year in which the contribution is made. Thus, where income or gain is recognized under section 453(d) upon the transfer of an installment obligation to a charitable organization, or under section 454(b) upon the transfer of an obligation issued at a discount to such an organization, or upon the assignment of income to such an organization, section 170(e)(1) and this paragraph do not apply if recognition of the income or gain occurs in the same taxable year in which the contribution is made. Section 170(e)(1) and this paragraph apply to a charitable contribution of an interest in ordinary income property or section 170(e) capital gain property which is described in paragraph (b) of § 1.170A-6 , or paragraph (b) of § 1.170A-7 . For purposes of applying section 170(e)(1) and this paragraph it is immaterial whether the charitable contribution is made "to" the charitable organization or whether it is made "for the use of" the charitable organization. See § 1.170A-8(a)(2) .
For purposes of this subparagraph a fixture which is intended to be severed from real property shall be treated as tangible personal property.
Property | Fair market value | Adjusted basis | Recognized gain sold |
Ordinary income property | $50,000 | $35,000 | $15,000 |
Property which, if sold, would produce long-term capital gain: | |||
(1) Stock held more than 6 months contributed to- | |||
(i) A church | 25,000 | 21,000 | 4,000 |
(ii) A private foundation not described in section 170(b)(1)(E) | 15,000 | 10,000 | 5,000 |
(2) Tangible personal property held more than 6 months (put to unrelated use by church) | 12,000 | 6,000 | 6,000 |
Total | 102,000 | 72,000 | 30,000 |
Property | Fair market value | Reduction | Contribution allowed |
Ordinary income property | $50,000 | $15,000 | $35,000 |
Property which, if sold, would produce long-term capital gain: | |||
(1) Stock contributed to: | |||
(i) The church | 25,000 | 25,000 | |
(ii) The private foundation | 15,000 | 2,500 | 12,500 |
(2) Tangible personal property | 12,000 | 3,000 | 9,000 |
Total | 102,000 | 20,500 | 81,500 |
Property | Fair market value | Reduction | Contribution allowed |
Ordinary income property | $50,000 | $15,000 | $35,000 |
Property which, if sold, would produce long-term capital gain: | |||
(1) Stock contributed to: | |||
(i) The church | 25,000 | 25,000 | |
(ii) The private foundation | 15,000 | 3,125 | 11,875 |
(2) Tangible personal property | 12,000 | 3,750 | 8,250 |
Total | 102,000 | 21,875 | 80,125 |
26 C.F.R. §1.170A-4