What do you think the fire department uses to practice their drills? That's right your house!
Admittedly your house was scheduled for demolition in order to build a new one, and you really didn't want to pay for that, so, hey, donate it to the fire department and claim it as a charitable deduction in your taxes.
The IRS does not agree, basically on the premise that donating a house that you were going to raze anyway is not an act of charity and, apparently, a charitable deduction can't be greater than the value of the donation. Since the owner was going to have to pay someone to demolish it, it actually has a negative value. Also, the homeowner is only giving the fire department partial use of the property, not the whole property.
On the homeowner's side the argument can be made that there is cost involved in preparing the house for burning and they have to clear away the debris.
Tough life!
Jane Peters, connecting you to the L.A. real estate scene
Buying or selling real estate in Los Angeles can be an overwhelming process. Contact Jane Peters, Los Angeles realtor specializing in absentee owners, out of town buyers, and those who need that extra attention, in order to make the transaction a smooth, trouble-free, and fun experience.
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Can I just burn the part I do not like? That is a joke! The values are down now so wouldn't it be better to burn it when the value is up for the tax write off?
Love to see great posts like this one ...keep the coming!!!
OHHHHH Man!!!! You are so on to something here. Not to many people have even heard of this service slash tax write off good post!
Monika, actually they are simply getting someone to demolish the home so that they can build a new one. Don't think the value of a tear-down would change one way or another. But good point
Jeremy, thank you.
David, It doesn't look like the IRS are going to allow it much longer, and in Southern California, I don't think they need much practice :)
Jane, this is fresh! I'm wondering if interior condos are accepted :)
Interesting post, Jane! I wonder what the rules and regs are here in NC? Guess I am going to have to look this one up!
Janice - very funny.
Leesa - No, you cannot burn your house down just for the hell of it.
Well Hello There Jane !!
Very interesting info, I havent heard of this myself. I wonder what the restrictions are ? I think maybe some neighbours may take issue with their neighbourhood smelling like burnt popcorn while the FD practise !?!?!?!
But maybe the house is such an eyesore that the neighbours would actually be pleased to see it torched !!
... either way, very interesting option !
Cheers !!
Sheldon
Well howdy to you too, Sheldon. Oh boy, look at all those Englishisms :) So cute. I've forgotten how to spell and tawk proper like!
LOL !