The 7th Circuit Court of Appeals has affirmed the denial of a charitable contribution deduction claimed by the owners of lakefront property in Wisconsin who were not satisfied with the house on the property and decided to demolish it to build another. They gave the old building to the local fire company on the condition that it be burned down. The Tax Court had previously denied the deduction because the donors had failed to show that the house, subject to the conditions, was worth more than the $10,000 they saved in demolition costs. ( See Tax Matters, Nonprofit Issues®, 12/1/10 .) Agreeing with the Tax Court, the Circuit Court rejected the taxpayers’ effort to compare the value of the...