A client wanted to know if he could get any tax deduction for a property that he purchased from his mothers estate which included a house (with value) and land. He pays property taxes for both items. The fire department approched him and asked if they could burn it down for pratice. The client wants to know if he can take a loss on it or if it could be cohsidered a charitable deduction. Any answers to his tax question would be appreciated.
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the only benefit right now
is the deduction for property taxes if property is in his name now.
As for letting fire department burn it down, he would first have to donate it to the agency,
get appraisal and receipt for the contribution.
Don't let him give them the green light without this substantiation.ChEAr$,
Harlan Lunsford, EA n LA -
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This issue was reviewed I believe on this site 1 -2 years ago. My recollection is you can't get a tax deduction for it.Comment
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I think you are right. There was an extensive discussion, perhaps on another board just this year, and if I remember correctly, the reasoning went...if the bldg were so worthless he was going to let the fire dept burn it down, it was not worth a deduction. The land was the value, and it didn't change ownership. See IRC sect
280-B concerning demolition of bldgs. No current ded for costs or loss incurred. Only basis is adjusted.Comment
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