Tax Court denies cross-motions in Hobby Lobby–related charitable deduction case
The David & Barbara Green 1993 Dynasty Tr. v. Commissioner, No. 19631-19, 165 T.C. No. 7, 2025 BL 355961, 2025 Us Tax CT Lexis 2334 (Oct. 02, 2025), Court Opinion
On October 2, 2025, the U.S. Tax Court denied dueling motions for partial summary judgment in consolidated deficiency cases involving three electing small business trusts and two individual shareholders of Hobby Lobby Stores, Inc.
The dispute centers on S-corporation-level noncash charitable contribution deductions for biblical artifacts donated in 2011 and 2012 to Museum of the Bible.
Judge Toro’s opinion holds that factual disputes over a “reasonable cause” defense under section 170(f)(11)(A)(ii)(II) preclude summary adjudication; dissents by Judges Marshall and Jenkins would decide several legal issues now.
Why It Matters
The ruling keeps alive taxpayers’ ability to argue reasonable cause to cure alleged Form 8283 and appraisal-related defects for large noncash gifts.
It also tees up unresolved, trust-specific questions about how sections 641, 642, 681, 512(b)(11), and 170 interact for ESBTs claiming S-corporation pass-through charitable deductions.
Key Facts
Parties: Three ESBTs (David a…
