We are excited by the many deconstruction and reuse projects occurring nationwide! Spring 2022 has been a busy time for all of us in the deconstruction industry. Our team appreciates working with industry members to jointly serve and protect our clients. Tax deductions for the value of donated materials continues to act as a significant carrot in helping clients choose deconstruction over demolition.
The thrill of leaving a thrift store with a huge load of clothing, dishes, furniture, or appliances for a fraction of the price of buying new is fantastic! Finding a set of 150-year-old doors or a simple set of kitchen cabinets that can be painted to look like new and save thousands of dollars… gold!
Any appraiser, whether appraising gems and jewelry, antiques, decorative art, architectural salvage, appliances, furnishings, or any other personal property, must be educated. In fact, the IRS requires education and/or experience to be considered an IRS Qualified Appraiser.
Every day we hear that the supply chain for goods is currently jammed in a hopeless bottleneck. Raw materials cannot arrive to factories to be made into new products and, even when they can, shipping lanes are blocked due to labor shortages and lack of delivery infrastructure. Hence, a consequence of the Covid-19 economic recovery, without an end in sight. We are told to start our holiday shopping early if we hope to have gifts delivered by the big day.
By necessity, deconstruction typically costs more than demolition due to the additional time needed to carefully take apart a structure with the aim of preserving the salvaged elements—opposed to the break-and-dump processes of demolition. However, these costs can be offset through tax deductions.
Sometimes clients and nonprofits fall into a rut of using the same service providers for many years, without evaluating what is right for their clients. We would like to offer an alternative and highlight the superior appraisals produced from our companies.
The most effective way to protect yourself and ensure your appraisal is accurate, fully documented, and substantiates the value is to hire an educated and competent appraiser.
Chirelli v. Commissioner, T.C. Memo 2021027 March 3rd, 2021 is another tax court case in which a taxpayer lost their non-cash charitable contribution due to lack of substantial compliance by the appraiser in producing an IRS Qualified Appraisal. There are important takeaways from this case to help protect taxpayers from losing their deductions and the subsequent paying of fines and interest should their appraisals not meet IRS standards. The IRS is serious about ensuring appraisers comply with the Internal Revenue Code and adhere to the strict definition of both Qualified Appraiser and Qualified Appraisal.
The exciting work of deconstruction continues across the country with Pittsburg being the latest city to adopt a deconstruction ordinance:
Deconstruction is the process in which a building is taken apart, piece-by-piece, with the aim of salvaging and reusing as many materials as possible. The scope of a deconstruction project can be as small as a bathroom renovation or the dismantling of a larger residential or commercial structure.