The Case Of An Agent Essay

902 Words Sep 8th, 2015 4 Pages
The Ferguson family contended that since the broker was acting as an agent for the as well as the charity, the date of delivery of stock was in August. The regulation states that the date of delivery of stock is the time of delivery. The court rejected the defense, and the gift completion date was found to be September 9th. The stock had ripened from interest due to a fixed right to receive cash. Since half of the stock had been tendered, it was deemed that the merger would be completed. Since the Ferguson family still had control of the stock, they were responsible to pay tax on the gain. There was an attempt to manipulate the date to evade the taxes. By law taxpayers have the right to avoid taxes by taking the least costly path, but it is illegal to evade taxes and take no path (Horwood). The IRS is becoming very strict about manipulating dates and evasion in general. Appreciation and tax can be avoided on stock nearing income realization with a deduction equal to the FMV if given before the outcome of the take attempt is known (Toce). That being said, it is important to get things done sooner rather than later. A big factor for non-cash charitable gifts is figuring about how the charitable organization is going to use the contribution. According to the related use rule, in order for the deduction to be based on the FMV, the charitable organization has to use the gift for its 501(c) tax exempt purpose (Toce). If it is not being used for its main purpose or had been…

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