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SPECIAL GIFT SITUATIONSby the Domestic Volunteer Service Act of 1973; these reimbursements are notforms of gross income even if the reimbursement exceeded the expenses of providingthe services. 430§ 9.18 USE OF PROPERTYA person may contribute to a charitable organization the right to use an item ofproperty. An example of this is a contribution, by an owner of an office building,of the rent-free use of office space to a charitable organization for a period oftime. Another example is a gift by an owner of vacation property of the right touse the property for a period of time (such as two weeks). There is, however, nofederal income tax charitable deduction for this type of gift. 431The reason for the lack of a deduction for a gift of this nature is the fact thatthe contribution is of a partial interest in the property; 432 this is not one of theforms of partial interests the gift of which gives rise to a charitable deduction. 433Also, because the donor of the right to use an item of property rarely takes thevalue of the use of the property into income as imputed rent, to allow a charitablededuction for the use of the property by a charitable organization would beto allow a double deduction under the circumstances.The IRS has provided an example of the application of this rule. The exampleconcerns a common situation: an auction sponsored by a charitable organization,where one of the items that is donated to the charity is the right to use avacation home for one week, with the donor of the home being its owner. Thevalue of the fair rental amount foregone by the property owner is not the basisfor a federal income tax charitable contribution deduction. 434 (Moreover, asnoted, use of the property by the successful bidder at the auction is considered“personal use” by the owner, for purposes of determining any business expensededuction allowable with respect to the property. 435 )§ 9.19 BARGAIN SALESThe charitable deduction for an item of capital gain property is often based onthe fair market value of the property; the donor is not required to recognize gainon the capital gain element in the property. 436 One of the exceptions to that ruleinvolves the bargain sale.430 Rev. Rul. 74-322, 1974-2 C.B. 17. One of these programs is the Foster Grandparent Program; supplementalstipends paid by sponsoring state agencies to volunteers in this program are not includible in the recipient’sgross income. Rev. Rul. 78-80, 1978-1 C.B. 22.431 Reg. § 1.170A-7(a)(1).432 IRC § 170(f)(3)(A).433 IRC § 170(f)(3)(A), last sentence. See, e.g., Logan v. Commissioner, 68 T.C.M. (CCH) 658 (1994) (charitablecontribution deduction not allowed for fair rental value of portion of a garage used to house a fire engine ownedby a county). In general, see § 5.3, note 6.434 Rev. Rul. 89-51, 1989-1 C.B. 89.435 Id. See IRC § 280A(d)(2)(C).436 See § 4.3. 326