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SPECIAL GIFT SITUATIONSresearch files, is consideration from the donee. Similarly, a charitable organization’spromise to hold a patent and maintain it for a period of time is considerationto the transferor if the transferor is benefited because others are preventedfrom purchasing or licensing the patent. The amount of the charitable contributiondeduction is the amount of the fair market value of the property reduced bythe consideration provided by the donee. 608The IRS announced that it intends to disallow charitable deductions basedon transfers of intellectual property when the deduction is “improper.” 609 Theagency also announced that it may impose penalties on those claiming theseinappropriate charitable deductions. 610 It further announced that the agency isreviewing promotions of transactions involving these improper deductions, andthat the promoters and appraisers of the intellectual property may also be subjectto penalties. 611§ 9.27 FOREIGN TAX CREDITThe IRS, in 2004, issued temporary regulations 612 and final regulations 613 thatpermit U.S. donors to allocate and apportion all of their deductible charitablecontributions to U.S.-source income for purposes of calculating the foreign taxcredit. 614 These regulations change the method of allocating and apportioningthese deductions from ratable apportionment on the basis of gross income toapportionment on the basis of income from sources within the United States.The temporary regulations provide that the deduction for charitable contributionsis definitely related and allocable to all of the donor’s gross income andis apportioned between the statutory grouping (or among the statutory groupings)of gross income and residual grouping on the basis of the relative amountsof gross income from sources in the United States in each grouping. For example,where a deduction for charitable contributions is allocated and apportionedfor purposes of the foreign tax credit limitation, the charitable deducation is allocatedto all of the donor’s gross income and apportioned solely to the residualgrouping consisting of U.S.−source gross income.This revision of the regulations is intended to ensure that multinational corporationsare not discouraged from making charitable contributions, which aredeductible for federal income tax purposes, simply because the allocation andapportionment rules would reduce the donor’s foreign source income and, as aresult, the donor’s foreign tax credit limitation.The temporary regulations also provide that, where a charitable contributionis made by a member of an affiliated group, the deduction for the charitablecontribution is related to and allocated to the income of all of the members of theafficliated group and not to any subset of the group.608 See, e.g., Rev. Rul. 2003-28, 2003-11 I.R.B. 594.609 Notice 2004-7, 2004-3 I.R.B. 310.610 See § 10.14, text accompanied by notes 216–235.611 Id., text accompanied by notes 245–257.612 Reg. 208246-90.613 T.D. 9143.614 The foreign tax credit rules are the subject of § 2.21. 350