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IRS Nixes Tax Deductions
Fire departments have for many years, utilized acquired structures for live fire training. My department was no exception, but stopped using them due to EPA requirements.
Like many departments, we told the perspective donor, that they could take a tax deduction for the property because our department was a 501 c 3 charitable organization as classified by the IRS. I'm sure most departments have told donors the same thing, but what we didn't know is; while we may be classified as a recognized organization under IRS codes, the properties themselves may not qualify for the deduction.
Think about how this might make us look in the eyes of the donor, when they are told; "sure you'll be able to write it off," and then they find out a year later the government says otherwise, and instead of lowering their tax bracket, may even make it higher. Will they be so likely to donate anything the next time?
http://finance.yahoo.com/banking-budgeting/article/107824/burning-d...
Like many departments, we told the perspective donor, that they could take a tax deduction for the property because our department was a 501 c 3 charitable organization as classified by the IRS. I'm sure most departments have told donors the same thing, but what we didn't know is; while we may be classified as a recognized organization under IRS codes, the properties themselves may not qualify for the deduction.
Think about how this might make us look in the eyes of the donor, when they are told; "sure you'll be able to write it off," and then they find out a year later the government says otherwise, and instead of lowering their tax bracket, may even make it higher. Will they be so likely to donate anything the next time?
http://finance.yahoo.com/banking-budgeting/article/107824/burning-d...
Replies to This Discussion
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Permalink Reply by Ron Ayotte on
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Firegeezer.com has a story about this.
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Permalink Reply by Trainer on
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I skimmed an article on yahoo about this, they are burning GOOD houses, someone with money, lots of it dreamed this one up. Take a house that has been unable to sell, burn it down and take the write off. This is stupid to most, but people with big money think differently, only bad thing here is it will screw up a good deal for the fire service.
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Permalink Reply by Travis Hofmann on
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it's still alot cheaper to the homeowner to donate it and have it burnt down then to have a demo crew come in and take it down and out
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