Discussion:Donation of Building to Fire Department

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Please see Discussion:Donation of House to Fire Department for a more in-depth discussion on this topic.


Jdc2006 (talk|edits) said:

11 December 2006
I have a client that is interested in donating just a bulding ( not the underlying land) to a fire department (local political orginzation) for their fire training. The building will be demolished by the fire department. My client has received a qualified appriasal for just the building. Both the appriaser and the fire department chief will sign the Form 8283 which I will attach along with the appriasal report to the client's Form 1040.

Housing in the client's city is very limited, so the value placed on the building was substantial. The appriaser basically compared the builing to condos in the area in order to value just the building and not the underlying land. I know the contributuon will be limited to 30% of AGI since it is a contribution of capital gain property.

Does anyone have any recommendations, concerns or guidance? I could not find any IRS material on such a contribution.

Also, it looks like this topic was discussed back in December 2005 (Panael) and in March of 2006 (SID), but I was wondering if anyone has actually filed a tax return seeking this type of contribution deduction. If Panael did so in 2005, I would be very interested in Panael's thoughts.

Tdoyle (talk|edits) said:

December 11, 2006
You might want to review the following previous discussions:


- Tim Doyle, TaxAlmanac Moderator - Talk to me 15:18, 11 December 2006 (CST)

Jdc2006 (talk|edits) said:

12 December 2006
Looks like the only authority is Morris N. Scharf v. Commr, TC Memo 1973-265, but this was before ยง280B, and there appears to be alot of uncertainity out there. Has anyone gone through an audit for this type of contribution?

Rjf713 (talk|edits) said:

15 January 2008
I was speaking to IRS agent in SE Wisconsin and was informed that these donations are being challenged everytime and the taxpayer is losing in every case. IRS claims that the bldgs must not have been worth much or you would not have burned down.

Is it possible to take deduction for tax basis before burn down and FMV of land remaining after the fire? i.e. purch price 100k value of land after fire 65k. Would it be correct in taking deduction for loss in value after structures have been removed? The appraisal came in at a value of over 100k, I think that amt is unreasonable but don't think the loss from purch price to value after fire is unreasonable.

Anyone have any actual experience with this??

donate

Death&Taxes (talk|edits) said:

9 February 2012
http://law.justia.com/cases/federal/appellate-courts/ca7/11-2078/11-2078-2012-02-08.html

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