Growth is usually followed by decay; life is followed by death, and here is another case where fire follows construction. Some Taxpayers have donated their house to the fire department so that the fire department can practice their skills and burn the house down. These taxpayers have then claimed a deduction that is hotly contested by the IRS if all the following haven’t been followed.
Donate the house and the land to the fire department. This is best done by deeding the entire property over to the fire department.
Do not replace the home or have already slated it for demolition. Replacing the house disallows any charitable deduction being taken.
But, if done correctly, you can get a huge tax deduction in the amount of the fair market value of the house and land. Something to think about.
I you have questions about tax deductions, call our office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.