[Code of Federal Regulations]
[Title 26, Volume 7]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.507-5]

[Page 89]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.507-5  Aggregate tax benefit; in general.

    (a) General rule. For purposes of section 507(c)(1), the aggregate 
tax benefit resulting from the section 501(c)(3) status of any private 
foundation is the sum of:
    (1) The aggregate increases in tax under chapters 1, 11, and 12 (or 
the corresponding provisions of prior law) which would have been imposed 
with respect to all substantial contributors to the foundation if 
deductions for all contributions made by such contributors to the 
foundation after February 28, 1913, had been disallowed,
    (2) The aggregate increases in tax under chapter 1 (or the 
corresponding provisions of prior law) which would have been imposed 
with respect to the income of the private foundation for taxable years 
beginning after December 31, 1912, if (i) it had not been exempt from 
tax under section 501(a) (or the corresponding provisions of prior law), 
and (ii) in the case of a trust, deductions under section 642(c) (or the 
corresponding provisions of prior law) had been limited to 20 percent of 
the taxable income of the trust (computed without the benefit of section 
642(c) but with the benefit of section 170(b)(1)(A)),
    (3) The amount succeeded to from transferors under Sec. 1.507-3(a) 
and section 507(b)(2), and
    (4) Interest on the increases in tax determined under subparagraphs 
(1), (2), and (3) of this paragraph from the first date on which each 
such increase would have been due and payable to the date on which the 
organization ceases to be a private foundation.
    (b) Contributions. In computing the amount of the aggregate 
increases in tax under subparagraph (1) of this paragraph, all 
deductions attributable to a particular contribution shall be included. 
For example, if a substantial contributor has taken deductions under 
sections 170 and 2522 (or the corresponding provisions of prior law) 
with respect to the same contribution, the amount of each deduction 
shall be included in the computations under section 507(d)(1)(A). 
Accordingly, the aggregate tax benefit may exceed the fair market value 
of the property transferred.

[T.D. 7233, 37 FR 28161, Dec. 21, 1972]