118 STAT. 1631 PUBLIC LAW 108–357—OCT. 22, 2004 (d) COORDINATION WITH APPRAISAL REQUIREMENTS.—Subclause (I) of section 170(f)(11)(A)(ii), as added by this Act, is amended by inserting ‘‘subsection (e)(1)(B)(iii) or’’ before ‘‘section 1221(a)(1)’’. (e) ANTI ABUSE RULES.—The Secretary of the Treasury may prescribe such regulations or other guidance as may be necessary or appropriate to prevent the avoidance of the purposes of section 170(e)(1)(B)(iii) of the Internal Revenue Code of 1986 (as added by subsection (a)), including preventing— (1) the circumvention of the reduction of the charitable deduction by embedding or bundling the patent or similar prop erty as part of a charitable contribution of property that includes the patent or similar property, (2) the manipulation of the basis of the property to increase the amount of the charitable deduction through the use of related persons, pass thru entities, or other intermediaries, or through the use of any provision of law or regulation (including the consolidated return regulations), and (3) a donor from changing the form of the patent or similar property to property of a form for which different deduction rules would apply. (f) EFFECTIVE DATE.—The amendments made by this section shall apply to contributions made after June 3, 2004. SEC. 883. INCREASED REPORTING FOR NONCASH CHARITABLE CON TRIBUTIONS. (a) IN GENERAL.—Subsection (f) of section 170 (relating to dis allowance of deduction in certain cases and special rules) is amended by adding after paragraph (10) the following new para graph: ‘‘(11) QUALIFIED APPRAISAL AND OTHER DOCUMENTATION FOR CERTAIN CONTRIBUTIONS.— ‘‘(A) IN GENERAL.— ‘‘(i) DENIAL OF DEDUCTION.—In the case of an indi vidual, partnership, or corporation, no deduction shall be allowed under subsection (a) for any contribution of property for which a deduction of more than $500 is claimed unless such person meets the requirements of subparagraphs (B), (C), and (D), as the case may be, with respect to such contribution. ‘‘(ii) EXCEPTIONS.— ‘‘(I) READILY VALUED PROPERTY.—Subpara graphs (C) and (D) shall not apply to cash, property described in section 1221(a)(1), publicly traded securities (as defined in section 6050L(a)(2)(B)), and any qualified vehicle described in paragraph (12)(A)(ii) for which an acknowledgement under paragraph (12)(B)(iii) is provided. ‘‘(II) REASONABLE CAUSE.—Clause (i) shall not apply if it is shown that the failure to meet such requirements is due to reasonable cause and not to willful neglect. ‘‘(B) PROPERTY DESCRIPTION FOR CONTRIBUTIONS OF MORE THAN $500.—In the case of contributions of property for which a deduction of more than $500 is claimed, the requirements of this subparagraph are met if the indi vidual, partnership or corporation includes with the return for the taxable year in which the contribution is made 26 USC 170 note. 26 USC 170 note.
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