How Deconstruction Saves You Money on Your Taxes

The 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.

Reduce taxes through deconstruction

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.

Tax Savings with Deconstruction

Sample Deconstruction
Project #1

  • Description: 2,098 square foot home
  • Value of donated materials: $194,500
  • Federal and state tax rate: 40%
  • Tax benefit to owner: $116,700
  • Deconstruction costs: $20,000
  • Net benefit to owner: $96,700

Sample Deconstruction
Project #2

  • Description: 3,997 square foot home
  • Value of donated materials: $400,000
  • Federal and state tax rate: 40%
  • Tax benefit to owner: $240,000
  • Deconstruction costs: $34,000
  • Net benefit to owner: $206,000
Deconstruction Experts - get a Tax Benefit from Deconstruction

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 NoVaStar Appraisals, Inc.

NoVaStar 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.

Although NoVaStar has completed thousands of appraisals all over the country, not one of our clients with a materials-based appraisal has ever been audited by the IRS. Due to our reputation and expertise, however, we have been retained by CPAs and tax attorneys to help defend donors who chose less qualified appraisal companies to value their charitable donations. In all cases, the IRS accepted NoVaStar’s fair market value determination and appraisal; we have never lost a case. There is no other appraisal firm in the country which can make that claim.

NoVaStar Appraisals Inc. 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