The Tax Court held that the Patels were not entitled to take a noncash charitable contribution deduction for granting FCFRD the right to conduct training exercises on their property and burn down the house as part of the exercises because they donated only the right to use the Vienna property and the house, which was a nondeductible partial interest in property under Sec.
The court first looked to Virginia law to determine what property rights the Patels had in the house and what property rights they gave to FCFRD. The court found that under Virginia law, land includes everything belonging or attached to it, above and below the surface.
After surveying Virginia case law, the Tax Court determined that the Patels' granting FCFRD the right to destroy the house while conducting training exercises was a mere license to use the property that did not vest any property interest in FCFRD.
With respect to the other exceptions, the Tax Court found that the Patels had not transferred a remainder interest in a personal residence because the license they granted to FCFRD did not create a remainder or any other interest in the house and the Patels had never used the house as a personal residence.