Tax Question Central
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Question: Donation of House for

Fire Department Training

I donated my house to the city fire department to practice their skills before the house was demolished. I was told I can write off the donations as part of the charitable contribution. But what should I base the contribution amount on? Is that the replacemnt value, insurable value or structure value? Is the Fire Dept. considered a public charity or private charity?
-- Ken in Virginia

Answer:

Oh, my, you've really raised a complicated issue...and one for which I'm afraid I can't find a definitive answer. Back in 1973, a Tax Court case (TC Memo 1973-265) allowed a taxpayer to claim a charitable contribution deduction, over IRS objections, for allowing a fire department to turn down a house as a training exercise. And, the deduction was based on the fair market value of the house before its destruction. However, the IRS is fighting a similar...+ More
-- Kevin McCormally

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