Albrecht v. Comm’r, T.C. Memo 2022-53 | May 25, 2022 | Greaves, J. | Dkt. No. 13314-20.

Opinion

Short Summary: Martha Albrecht donated 120 items of Native American jewelry and artifacts (donation) to the Wheelwright Museum of the American Indian (Museum). Pursuant to the express terms of a “Deed of Gift” (deed), Albrecht transferred all her rights in the property, unless otherwise stated in a separate Gift Agreement. The Gift Agreement was not included with the deed, and the Museum did not provide Albrecht with any further written documentation concerning the donation. Albrecht filed Form 1040, U.S. Individual Income Tax Return, for the year at issue in which she reported the donation on Schedule A, Itemized Deductions, and attached a copy of the deed. The return was examined, and the IRS disallowed the donation on the ground that the requirements of section 170 were not met. Albrecht sought review in the Tax Court.

Key Issue:

• Whether Albrecht, through the deed and the Gift Agreement, satisfied the contemporaneous written acknowledgement requirements of 26 U.S.C. § 170(f)(8)(B) to receive a charitable contribution deduction for the donation to the Museum?

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Donations to charities can be deducted as an itemized deduction on your tax return. This means that to achieve any tax benefit from your charitable donations, you cannot use the standard deduction and instead must itemize your deductions. However, if the total of all your itemized deductions does not exceed the standard deduction amount for the year, then you are better off taking the standard deduction, but in doing so, you will get no tax benefit from your charitable contributions.

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