George O. Doherty Emelia A. Doherty v. Commissioner Internal Revenue Service

OVERVIEW

George and Emelia Doherty appeal the Tax Court’s determination of the fair market value of a painting they had donated to a museum. As a result of this determination, the Tax Court found the Dohertys liable for tax deficiencies for tax years 1982 and 1983. We affirm.

I.

In 1969, the Dohertys bought “Attacking Stagecoach,” which may or may not have been painted by Charles M. Russell, for $10,000. They donated an undivided 40% interest in the painting to the Charles M. Russell Museum in Great Falls, Montana in tax year 1982 and the remaining 60% in tax year 1983. In those years, they claimed charitable contribution tax deductions in the amounts of $140,000 and $210,000 respectively. The Commissioner disputed these amounts in the Tax Court, contending that the fair market value of the painting at the time of contribution was only $100. The Tax Court, after considering evidence presented by both parties, determined the fair market value at the time of contribution to be $30,-000. This appeal followed.

II.

The Dohertys contend that the Tax Court improperly relied upon facts and circumstances occurring after the date of their donation in making its determination of the…