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C H A P T E R F I F T E E N1 5Other Gifts of RemainderInterests§15.1 Overview 505§ 15.2 Contributions of RemainderInterests in PersonalResidence or Farm 506(a) Personal Residence 506(b) Farm 508§ 15.3 Undivided Portions of EntireInterests in Property 509Previously, this text discussed the principle of the federal income tax law underlyingplanned giving which is based on the concept of partial interests. 1 Thecharitable contribution deduction (if one is available) is for the gift of a remainderinterest or an income interest.§15.1 OVERVIEWThe law is specific as to the circumstances in which a charitable deduction arises,particularly when the charitable gift is made using a trust. Basically, there is nofederal income tax charitable contribution deduction unless the gift meets one ofa variety of stringent tests. 2 Related to this point is the rule of law that a charitablecontribution consisting of a transfer of a future interest in tangible personalproperty is treated as made only when all intervening interests in, and rights tothe actual possession or enjoyment of, the property have expired or are held bypersons other than the donor or those related to the donor. 3Otherwise, there are few situations in which a federal income tax charitablecontribution deduction is available for a gift of a partial interest. (The rules inthis regard are essentially the same in the gift and estate tax setting. 4 ) One exceptionis the special set of rules concerning certain gifts of works of art, as distinctfrom the copyrights in them, which can lead to an estate and gift tax charitablededuction. 51 See Chapter 5.2 IRC § 170(f)(3)(A). See § 9.22.3 IRC § 170(a)(3). See § 9.21.4 See Chapter 8.5 IRC §§ 2055(e)(4), 2522(c)(3). See § 9.1. 505