Court denies bargain-sale deduction

The Tax Court has denied a charitable contribution deduction for a bargain-sale “gift” of clean fill given to the City of Tucson by a landfill operator as part of a settlement of litigation with the City over responsibility for adjacent properties.  The Court said that the taxpayer did not provide a proper acknowledgement with its tax returns and even if it had, the Court would have denied the deduction because the taxpayer did not prove that the fair market value of the fill exceeded the value of goods or services given it by the City.