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SPECIAL GIFT SITUATIONSrespect to, or in fulfillment of, the income interest. 539 This rule is not to be construed,however, to:• disallow a deduction to the trust 540 for amounts paid by the trust after thegrantor ceased to be treated as the owner of the income interest 541 that arenot taken into account in determining the amount of recapture, 542 or• disallow a deduction to the grantor 543 for a charitable contribution madeto the trust in excess of the contribution required to be made by the trustunder the terms of the trust instrument with respect to, or in fulfillmentof, the income interest. 544§ 9.23 PARTIAL INTERESTSAs a general rule, there is no federal income tax deduction for a contribution of apartial interest in property to a charitable organization. 545 This rule is, however,largely engulfed by exceptions. 546 The principal exception is for qualified transfersmade in trust form. 547 Additional exceptions cover certain gifts for conservationpurposes, 548 contributions of a remainder interest in a personal residence orfarm, 549 and contributions of an undivided portion of the donor’s entire interestin property. 550A charitable deduction is, however, allowed for a contribution of a partialinterest in property, without regard to this rule, when the interest is less than theentire interest in the property, if the interest is the donor’s entire interest in theproperty. 551 Nonetheless, if the property in which the partial interest exists wasdivided to create this type of partial interest and thus avoid the general rule, thecharitable deduction will not be allowed. 552The purpose of this general rule is to preclude a claimed charitable contributiondeduction in an amount greater than the value of the interest contributed.Illustrations of partial interests include• The contribution of voting stock to a charitable organization, with thedonor retaining the right to vote that stock. 553 (Subsequently, however, theIRS considered a similar set of facts and reasoned that, because the votingrights were transferred to an unrelated individual for a valid business539 IRC § 170(f)(2)(C); Reg. § 1.170A-6(d)(1).540 IRC § 642(c)(1).541 IRC § 671.542 See § 9.22(f).543 IRC § 671.544 Reg. § 1.170A-6(d)(2).545 IRC § 170(f)(3)(A); Reg. § 1.170A-7(a)(1).546 A court stated the general rule without qualification (which, if literally accurate, would undo nearly the entiretyof the law underlying planned giving): “The Internal Revenue Code does not allow charitable deductions fordonations of partial interests in property.” Greene v. United States, 864 F. Supp. 407, 412 (S.D.N.Y. 1994).547 See § 9.22.548 See § 9.7.549 See § 15.2.550 See § 15.3.551 See § 15.3.552 Reg. § 1.170A-7(a)(2)(i).553 Rev. Rul. 81-282, 1981-2 C.B. 78. 342