Burning Down the House!

Posted on July 30, 2012

Can you deduct the value of a home that you allowed the fire department to burn down as a charitable contribution deduction? In a recent Tax Court case, a couple wanted to remove the home on an existing lot in order to build a new home and donated the house to the local fire department. The Court held that a couple was not entitled to a charitable contribution deduction for allowing the fire department to burn down their home for training purposes. The Court held that the couple merely granted a license to use the home and did not convey an ownership in the property to the fire department. Has the IRS challenged a charitable deduction you made? Call us, we can help. Call 877 4 IRS LAW