Property Donation Dispute: A Lesson on Proper Documentation

A married couple gave half of a piece of land to their city in 2018, hoping to claim a big tax break. They asked for a $332, 500 deduction on their taxes, but the IRS said no. The court agreed with the tax office because the couple did not get a written receipt at the same time they donated. The land originally belonged to their cousin, who bought it and then gave it to the couple before they handed it over to the city for conservation. The IRS sent a notice asking for proof that the donation was legitimate, but the couple missed the required paperwork.

When the case went to court, the judge ruled that without a contemporaneous written acknowledgment—something the law explicitly demands—the deduction cannot be taken. The court’s decision confirms that even if you give something valuable to a charity or public body, the paperwork must be done right at the moment of giving. This ruling reminds taxpayers that tax benefits are not automatic; they come with strict rules about documentation. It also shows how important it is to keep records that show the exact date, amount, and purpose of a donation. If you plan to donate property or other assets, make sure you get a written confirmation from the recipient immediately. That small step can save you from losing a large tax deduction and from getting into legal trouble.

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