FOSTER v. COMMISSIONER OF INTERNAL REVENUE
T.C. Summary Opinion 2012-90
CHARLES A. FOSTER AND SUSAN C. FOSTER, Petitioners,
v.
COMMISSIONER OF INTERNAL REVENUE, Respondent.
Docket No. 12024-08S.
United States Tax Court.
Filed September 11, 2012.
SUMMARY OPINIONCARLUZZO, Special Trial Judge.
This case was heard pursuant to the provisions of section 7463.1 Pursuant to section 7463(b), the decision to be entered is not reviewable by any other court, and this opinion shall not be treated as precedent for any other case. In a notice of deficiency dated February 20, 2008 (notice), respondent determined a $21,148.75 deficiency in petitioners' 2003 Federal income tax and imposed a $6,212.49 addition to tax under section 6651(a)(1).2 The issue for decision is whether petitioners are entitled to a charitable contribution deduction for the donation of a facade easement (easement) to L'Enfant Trust, Inc. (L'Enfant).3 BackgroundSome of the facts have been stipulated and are so found. Petitioners, who are, and were at all times relevant here, married to each other, resided in the District of Columbia when the petition was filed.
On November 26, 2002, Maria P. Logan and James Wade Logan (Logans) and Charles A. Foster (petitioner) purchased, as tenants in common, a two-story residence on 34th Street in the Georgetown Historic District of Washington, D.C. (34th Street). At all times relevant 34th Street was and is subject to restrictions imposed pursuant to the Old Georgetown Act and the Historic Landmark and Historic District Protection Act of 1978 (Preservation Acts).
1. Unless otherwise indicated, subsequent section references are to the Internal Revenue Code of 1986, as amended, in effect for the relevant period. Rule references are to the Tax Court Rules of Practice and Procedure.
2. Petitioners now concede liability for a sec. 6651(a)(1) addition to tax as appropriate.
3. L'Enfant, a District of Columbia nonprofit corporation chartered in 1978, qualifies as a sec. 501(c)(3) organization organized and operated for the purpose of holding and enforcing conservation easements on historic designated properties in Washington, D.C.
4. Rounded to the nearest hundred dollars.
5. The parties used the same valuation method to determine the fair market value of 34th Street before the donation of the easement, and except for some nitpicking on points not particularly determinative to the specific issue before us, the parties agree, more or less, on the before-donation value of 34th Street.