Rev. Rul. 75-66

Advice has been requested concerning the deductibility under section 170 of the Internal Revenue Code of 1954 of a contribution of land to the United States under the circumstances described below.

An individual donated his entire interest in 800 acres of land to the United States and retained the right during his lifetime to train his personal hunting dog, and any other hunting dog he may subsequently own, on trails extending over the entire tract, including the right to maintain paths and lanes relating to the reserved use. The individual was informed by the United States Department of the Interior that the reservation would not interfere with the Government's use and enjoyment of the donated property. The trails for training the dog are used in accordance with the Department of the Interior's regulations on such use.

Section 170 of the Code provides, subject to certain limitations, a deduction for gifts and contributions to or for the use of organizations described in section 170(c), payment of which is made within the taxable year.

Section 170(c)(1) of the Code provides, in part, that the term "charitable contribution" means a contribution or gift to or for the use of a State, a possession of the United States, or any political subdivision of any of the foregoing, or the United States or the District of Columbia, but only if the contribution or gift is made for exclusively public purposes.

Section 170(f)(3)(A) of the Code provides, in part, that in the case of a contribution (not made by a transfer in trust) of an interest in property which consists of less than the taxpayer's entire interest in such property, a deduction shall be allowed only to the extent that the value of the interest contributed would be allowable as a deduction under section 170 if such interest had been transferred in trust. A contribution by a taxpayer of the right to use property shall be treated as a contribution of less than the taxpayer's entire interest in property.

Section 170(f)(3)(B) of the Code and section 1.170A-7(b)(1)(i) of the Income Tax Regulations provide, in pertinent part, as an exception to section 170(f)(3)(A), that a deduction is allowed under section 170 for the value of a charitable contribution not in trust of an undivided portion of a donor's entire interest in property. An undivided portion of a donor's entire interest in property must consist of a fraction or percentage of each and every substantial interest or right owned by the donor in such property and must extend over the entire term of the donor's interest in such property and in other property into which such property is converted.

Thus, section 1.170A-7(b)(1)(i) of the regulations is complied with if the only rights retained by the donor are insubstantial. In the instant case, the retained right during the taxpayer's lifetime to train his personal hunting dog on the entire tract, in accordance with the regulations of the Department of the Interior on such use, is not substantial enough to affect the deductibility of the property contributed.

Accordingly, the contribution of the land to the United States in the instant case is deductible by the taxpayer in the manner and to the extent provided by section 170 of the Code.