Tax Savings

How Deconstruction Saves You Money on Your Taxes

Tax Savings from DeconstructionThe Tax Code is very clear; a tax-payer who makes a non-cash donation to a qualified non-profit organization is entitled to a deduction equal to the full fair market value of the items donated. Additionally, recent Tax Court cases indicate the cost to deconstruct may also be tax-deductible.

Deconstruction can be a tax-savvy alternative to demolition

Washington Post August 26, 2016
Click Here to read article

Look at the Tax Savings Numbers

The sample worksheets below illustrate how tax savings from a donation of salvaged materials can be substantial.

Note: The figures below are estimates intended to illustrate the tax benefits of deconstruction. Actual figures may vary.

Sample Deconstruction Project #1

  • Description: 2,098 square foot home
  • Value of donated materials: $171,300
  • Federal and state tax rate: 40%
  • Tax benefit to owner: $68,520
  • Deconstruction costs: $35,000
  • Net benefit to owner: $33,520

Sample Deconstruction Project #2

  • Description: 3,997 square foot home
  • Value of donated materials: $345,900
  • Federal and state tax rate: 40%
  • Tax benefit to owner: $138,360
  • Deconstruction costs: $58,000
  • Net benefit to owner: $80,360

The All-Important Appraisal

The IRS guidelines state “only a Qualified Appraiser can make a Qualified Appraisal for any donation over $5,000.” When it comes to the income tax benefits of deconstruction, there is no more important element than a complete and accurate appraisal of the fair market value of donated materials by a qualified appraiser.

Enjoy Maximum Tax Savings & Peace of Mind with Green Donation Consultants

Green Donation Consultants works diligently to accurately establish your donation’s full fair market value so that you enjoy the maximum tax benefits allowable by law. Our appraisals, typically 80 to 100 pages long, have earned us a reputation for providing a level of detail that is unmatched in the industry.

Green Donation Consultants has completed literally thousands of deconstruction appraisals since 2010 and have had very few audited by the IRS. Due to our expertise and experience in front of the IRS, CPAs and tax attorneys choose our appraisers as expert witnesses for their clients who initially choose less qualified and experienced groups to assist with their deconstruction projects. In each case, we were able to help their clients pick up the pieces. We are quite literally the last word in materials-based appraisals for charitable donations in the United States.

Green Donation Consultants is properly credentialed to perform charitable donation appraisals in all 50 U.S. States.

Call today to schedule a free, no-obligation estimate of the fair market value of your charitable donation!

 

Call us today at 800-870-3965