CCA 200947062: Contribution date for property transferred to charity after acquisition

Plain-English summary

Chief Counsel advice addressed when a charitable contribution occurs if a donor purports to transfer property before receiving title to it. If state law treats the donor as transferring title to the charity only when the donor actually receives title, the later date is treated as the contribution date. The advice also explains that a transfer dependent on a precedent event, such as the donor receiving title, does not become effective until the possibility that it will fail becomes negligible. The advice cites Treas. Reg. § 1.170A-1(b) for the general timing rule.

Ruling snapshot

• Question: When is a charitable contribution made if the donor receives title after purporting to transfer it?
• Outcome: Advice given
• Key authorities: IRC § 170; Treas. Reg. § 1.170A-1

Full text (IRS public release)

ID: CCA-711402-09 Number: 200947062
Release Date: 11/20/2009
Office: ----------------
UILC: 170.01-00

From: --------------
Sent: Wednesday, July 01, 2009 2:02 PM
To: ----------------
Cc:
Subject: RE: After acquired property question

If, under the law of the applicable state, X is treated as transferring title to charity on the date X actually receives title (though that date is subsequent to the date of the purported transfer of title by X to charity), that subsequent date is treated as the date of the contribution. See also Treas. Reg. Sec. 1.170A-1(b), generally, for time of making contribution.

Section 1.170A-1(e) applies to a transfer dependent upon the performance of some act or the happening of a precedent event in order that it might become effective. For a purported transfer that is in essence dependent on the happening of a precedent event (such as the donor receiving title), the charitable transfer will not become effective until the date that the possibility of it not becoming effective is so remote as to be negligible.