target="_blank" rel="nofollow" href="#ulink_af7d5782-512a-5eee-aa03-954c25de36f8">608 IRC § 7428. See Tax-Exempt Organizations § 27.5(b). An action pursuant to these procedures may not, however, be brought with respect to a revocation of status caused by application of IRC § 6033 (j) (see text accompanied by supra note 597 (IRC § 7428(b)(4)).609 609 IRC § 7428(c).
610 610 Rev. Proc. 2011-33, 2011-25 I.R.B. 887 § 5.02.
611 611 IRC §§ 671–679.
612 612 This principle includes the charitable contribution deduction. Reg. § 1.671-2(c). For example, a charitable contribution made by a trust that is attributed to the grantor (an individual) is aggregated with the grantor's other charitable contributions to determine their deductibility under the percentage limitations (see ch. 7). Reg. § 1.671-2(c).
613 613 IRC § 671.
614 614 Reg. § 1.671-2(e).
615 615 Generally, the grantor of a trust is the person who contributes the principal to the trust (Bixby v. Commissioner, 58 T.C. 757 (1972); Rev. Rul. 87-127, 1987-2 C.B. 156; Priv. Ltr. Rul. 9338015). The IRS published final and temporary regulations providing guidance as to the qualification of persons as grantors of trusts (T.D. 8890).
616 616 Reg. § 1.671-1(a).
617 617 IRC § 673.
618 618 IRC § 674(a).
619 619 IRC § 674(b)(4).
620 620 Reg. § 1.674(a)-1(b)(1)(iii). The IRS ruled that an arrangement by which the “presumptive remaindermen” of three charitable lead trusts would serve as “charitable appointers” (those who designate the income beneficiary charities) following the death of the trusts' grantor would not cause the trusts to be treated as owned by the grantor (Priv. Ltr. Rul. 200029033).
621 621 IRC § 675.
622 622 A nonadverse party is a person who is not an adverse party. IRC § 672(b). An adverse party is a person having a substantial beneficial interest in a trust that would be adversely affected by the exercise or nonexercise of the power that they possess with respect to the trust. IRC § 672(a); Reg. § 1.672(a)-1(a). A person having a general power of appointment over trust property is deemed to have a beneficial interest in the trust. IRC § 672(a); Reg. § 1.672(a)-1(a).
623 623 IRC § 676.
624 624 IRC § 677. The IRS examined a proposed trust agreement and concluded that the grantor would not be treated as the owner of the trust, although the agency observed that actual operation of the trust could lead to a different conclusion (Priv. Ltr. Rul. 199927010, corrected by Priv. Ltr. Rul. 200003059). The IRS reviewed the operations of an ostensible charitable remainder trust (see ch. 10) and, finding various inappropriate payments out of trust income, concluded that the trust cannot qualify as a charitable remainder trust but rather is a grantor trust, with the trustee being owner of the trust (Chief Couns. Adv. Mem. 200628026).
625 625 IRC § 678.
626 626 IRC § 679.
CHAPTER THREE Contributions of Money and Property
§ 3.2 Contributions of Property in General
§ 3.3 Contributions of Long-Term Capital Gain Property in General
§ 3.4 Contributions of Ordinary Income Property (a) Definition of Ordinary Income Property (b) Deduction Reduction Rules (c) Special Rules of Inapplicability
§ 3.5 Certain Contributions of Capital Gain Property (a) General Deduction Reduction Rule (b) Qualified Appreciated Stock
§ 3.6 Contributions of Property for Unrelated Use (a) Special Rule (b) Definition of Unrelated Use (c) Recapture of Deduction
§ 3.7 Step Transaction Doctrine
This chapter summarizes the federal tax law concerning the determination of the income tax charitable deduction for contributions of money or property, when the donor is not retaining or creating any interest in the item being transferred. The calculation of this deduction must be made under these rules before application of the general percentage limitations.1 Contributions of money or property, when the donor is creating an interest in the item being transferred, are subject to other rules.2
§
