Has anyone worked with charitable contributions of construction/improvements?
I have a construction business client that would like to donate a necessary improvement to a fire house and we would like to know if the IRS will use the Fair Market Value or the cost of the improvements(supplies and labor). I believe it is the cost of labor and supplies, excluding the potential "ordinary income" portion that would bring it to Fair Market Value. An appraisal will be done and the charity will provide documentation.
Any thoughts or experience welcome...
Thanks,
Melita
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Melita Love
Melita Love CPA
Dobbs Ferry NY
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