Harold Davis and Enid Davis v. United States

INTRODUCTION

This matter is before the court following the district court’s granting of summary judgment in favor of the United States, Davis v. United States, 664 F.Supp. 468 (D.Idaho 1987). Plaintiff-appellants Harold and Enid Davis claimed charitable deductions under Internal Revenue Code Section 170 for funds they sent to their two sons for their support while they served as full-time unpaid missionaries for the Church of Jesus Christ of Latter-Day-Saints (“Church”), Benjamin Davis at the New York City Mission and Cecil Davis at the New Zealand/Cook Islands Mission. These deductions were disallowed by the Internal Revenue Service and the appellants initiated the present refund suit. The district court determined that (1) these funds were not deductible as “unreimbursed expenses” because such expenses may be deducted only by the individual performing services while “away from home,” and only if the primary motive in performing the services was to benefit the charity, and (2) that they were not deductible as charitable contributions because the Church did not exercise sufficient control over the disposition of the funds.

We have jurisdiction pursuant to 28 U.S. C. Sec. 1291…