I have a client who wants to donate a building for a practice burn by the local fire department. Any ideas on how to come up with a fair market value for a donation?
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The problem here isn't even likely the FMV, but rather whether you have a deductible charitable contribution at all. Answer appears to be most likely likely no deduction at all.
http://taxalmanac.com/index.php/Disc...t_For_Training - good thread on this, with links to others. (It's a different forum but has good cites in the discussions.) -
non profit volunteer fire department
This would be a qualified charitable organizations. Any ideas how to handle?Comment
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Here's another brief discussion on the subject from this forum.
Unless he gives the underlying property to the fire department, he probably doesn't have a deduction.
As a matter of fact, I've seen it argued on another forum that he actually received something of value from the burn if he were planning to demolish the building anyhow. (That would be the amount he would have paid to have the building demomlished vs what he has to pay to just get the after-burn debris removed - probably a considerable savings.)
"The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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