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Mark Caragio
  • Sunnyvale, CA
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Deconstruction or Demo?

Mark Caragio
  • Sunnyvale, CA
Posted Dec 3 2015, 23:02

I am in the process of subdividing a lot and building 2 new homes.  It was brought to my attention that deconstruction could more than pay for itself with the tax deduction.  But this is $30k more expensive than demoing.  If I model this with tax software as a donation it does more than pay for it, but my builder just told me that for a spec home that I immediately sell after construction, the deconstruction benefit only changes the basis on the sale and won't be as beneficial as a donation deduction.

I do plan to have a CPA do the taxes for this project next year, but don't have a CPA now and don't have the time to find one before the project starts.

So, deconstruct or demolish?

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