Discussion:Charitable Contribution??
From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Charitable Contribution??
DARYLGEYER (talk|edits) said: | 26 April 2007 |
| Taxpayer has rental property with original cost of $100 allocated $85 to building and $15 to land. Building has been depreciated down to adjusted basis of $20 and land remains at $15. Taxpayer takes building out of service and donates use of the building to local fire department for practice. When fire department is done, building will be worthless and torn down. Does taxpayer deduct basis as charitable contribution when fire department destroys or 4797 writeoff at time of worthlessness or when torn down?
Is there an alternative strategy we should use? | |
| April 26, 2007 | |
| Do a search on fire department. Couple threads on this. Surprisingly, you have taxable income from the service they provide you as I recall it. | |
| 26 April 2007 | |
| The deduction is fmv reduced by any potential 1250 recapture (ordinary income recapture). | |
| 27 April 2007 | |
| I wouldn't think there is a charitable contribution at all...rather the basis in the land is now $35....though I haven't done any research and haven't thought through whether the non recaptured 1250 depreciation attaches to the land... | |
To join in on this discussion, you must first
log in.
