Constancio Babilonia and Cleo Babilonia v. Commissioner of Internal Revenue

The taxpayers, parents of Olympic figure skater Tai Babilonia, sought to deduct the cost of accompanying Tai to various international competitions as expenses incurred incident to performing a service to a charitable organization. We affirm the Tax Court’s decision disallowing the deductions.

We have repeatedly held that donations to a charitable organization are deductible only if made out of a “detached and disinterested generosity.” See, e.g., Allen v. United States, 541 F.2d 786, 787 (9th Cir. 1976). Where a contribution benefits the donor as well as the charity, the primary purpose controls. The Commissioner need not show that personal benefit is the sole motive; a contribution may not be deducted where the expectation of personal benefit is the primary motive. Id. at 788 . The same principles govern the deduction under Treas.Reg. § 1.170A-1(g) of expenses incurred in performing services for a charity. See Sheffels v. United States, 264 F.Supp. 85 (E.D.Wash.1967), aff’d, 405 F.2d 924 (9th Cir. 1969) (expressly adopting reasoning of district court); Tate v. Commissioner, 59 T.C. 543 (1973); Saltzman v. Commissioner, 54 T.C. 722 (1970).

Here, the Tax Court found that the…