Calvin H. Johnson (Texas) has published Ain’t Charity: Disallowing Deductions for Kept Resources, 128 Tax Notes 545 (Aug, 2, 2010). Here is the abstract:

A deduction for a charitable contribution is a reasonable subtraction when the taxpayer has lost the amounts paid so it can no longer be used to support the taxpayer’s standard of living. If a taxpayer receives services back, the payment is not charity or a reduction of standard of living but self-service, and the payment is not properly deducted. This proposal would create a floor of $1,000 per year to cover cases in which a payment is not strictly identified with the quid pro quo but the taxpayer attended services or events put on by the charity. Deductions would be allowed only for payments to the charity in excess of the floor.

Similarly, a deduction for unrealized appreciation of property given to charity is a way of sheltering gain that a taxpayer has accumulated and used for selfserving purposes. Thus the proposal would limit charitable deductions to basis. Under it, the taxpayer would sometimes want to sell property to take advantage of capital gains rates, but requiring a real sale avoids hard valuation difficulties.

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