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TIMING OF CHARITABLE DEDUCTIONSlaw for the recording and transfer of title to parcels of real estate; transfers of realproperty are generally effected by means of deeds.As to the timing of the deduction, the contribution for a gift of real propertygenerally occurs on the date the donor delivers a deed to the property to thecharitable donee. 56 Recording of the deed is not necessary to make the transfercomplete. 57A charitable contribution deduction for a transfer of mortgaged land to acharitable organization by a partnership was denied by a court because theproperty was subject to a special warranty deed. Under state law, the donorpartnership remained liable on the outstanding mortgage. The deed imposed anobligation on the grantor to protect the grantee against adverse claims thatmight impair the grantee’s title to the land. Thus, the court held that the warrantywas merely a promise to make payments in the future, with a charitablededuction available when the payments were actually made. 58§ 6.13 GIFTS BY CORPORATIONSThe foregoing rules apply with respect to gifts by both individual and corporatedonors. Thus, the general rule that a federal income tax charitable contributiondeduction arises at the time of, and for the year in which, the contribution ismade is equally applicable to individual and corporate donors.A corporation that reports its taxable income using the accrual method ofaccounting may, however, at its election, deduct charitable contributions paidwithin 2-1/2 months after the close of its tax year, as long as: (1) the board ofdirectors of the corporation authorized the making of a charitable contributionduring the tax year, and (2) the charitable contribution is made after the close ofthe tax year of the corporation and within the 2-1/2 month period. 59 This electionmust be made at the time the return for the tax year is filed, by reporting thecontribution on the return. There must be, attached to the return, a written declarationthat the resolution authorizing the contribution was adopted by the boardof directors during the tax year involved, and the declaration must be verified bya statement signed by an officer authorized to sign the return that it is madeunder penalties of perjury. A copy of the resolution of the board of directorsauthorizing the contribution must also be attached to the return. 6056 E.g., Dyer v. Commissioner, 58 T.C.M. (CCH) 1321 (1990); Brotzler v. Commissioner, 44 T.C.M. (CCH) 1478(1982); Guest v. Commissioner, 77 T.C. 9 (1981); Alioto v. Commissioner, 40 T.C.M. (CCH) 1147 (1980);Dodge, Jr. v. Commissioner, 27 T.C.M. (CCH) 1170 (1968); Johnson v. United States, 280 F. Supp. 412(S.D.N.Y. 1967).57 Douglas v. Commissioner, 58 T.C.M. (CCH) 563 (1989).58 Tidler v. Commissioner, 53 T.C.M. (CCH) 934 (1987).59 IRC § 170(a)(2); Reg. § 1.170A-11(b). An illustration of this rule appears in Priv. Ltr. Rul. 7802001. This rulewas created because corporations intending to make the maximum charitable contribution allowable as a deductionexperienced difficulty in determining, before the end of the tax year, what their net income would be.S. Rep. 851, 81st Cong., 1st Sess. (vol. 3) 3-4 (1949).60 Reg. § 1.170A-11(b)(2). In Chase v. Commissioner, 19 T.C.M. (CCH) 234 (1960), and Wood-Mosaic Co. v.United States, 160 F. Supp. 63 (W.D. Ky. 1958), charitable deductions were denied because there was no evidencethat the corporations authorized the contributions during the tax years involved. 182