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§ 6.12 GIFTS OF REAL PROPERTYclaimed a charitable contribution deduction for their share of the fair marketvalue of the property. The IRS, however, determined that, because of the option,there could not be charitable deductions for 1993, but that the deductions couldbe taken with respect to 1995. 54§ 6.10 GIFTS OF CREDIT CARD REBATESA deductible charitable contribution can arise when the user of a credit cardcauses a percentage of the price of an item purchased with the card at a participatingretailer to be transferred, by the company sponsoring the card, to a charitableorganization selected by the cardholder. 55A cardholder may claim the deduction for the tax year in which the companymade payments to one or more charitable organizations on the cardholder’sbehalf. The company is not functioning as an agent for the donee charities.Instead, the company serves as agent for the cardholders with respect to therebate amounts it holds. Thus, although the rebates are held by the company, thecardholders retain control over them.For a charitable gift to be deductible, there must be the requisite delivery. Itis not enough for there to be delivery to a party for subsequent delivery to acharitable organization. Accordingly, there is no delivery of a charitable contributionwhen the company receives the rebate amounts, nor when cardholdersfail to claim rebates for their personal use. Rather, delivery occurs when thecompany transfers the rebate funds to the designated charities. (If the companyserved as the agent of the charities, the charitable deduction would arise at thetime the company received the rebate amounts.) This program is designed toallow individuals to have the charitable deduction in the year of the rebate byenabling the company to transfer the rebates to charity before the close of thetax year.§ 6.11 GIFTS OF TANGIBLE PERSONAL PROPERTYA person may make deductible gifts of tangible personal property to a charitableorganization. Items of tangible personal property include works of art, furniture,automobiles, and clothing.Usually, there is no formal system in law for the recording and transfer of anitem of tangible personal property. (The obvious exception, of course, is the titlerequirements involving motor vehicles.) In appropriate circumstances, however,title transfer of tangible personal property to a charitable organization can beevidenced by the making of a deed of gift.§ 6.12 GIFTS OF REAL PROPERTYA person may make a contribution of real property to a charitable organization andreceive an income tax charitable deduction. There is, of course, a formal system in54 Tech. Adv. Mem. 9828001.55 Priv. Ltr. Rul. 9623035. The facts pertaining to this credit card rebate plan are summarized in § 3.1(h). 181