Build a New Home with a 5-Year Tax Deduction
Donate, Lift, Move off-site, Build New and Take Advantage of a 5-year Tax Deduction
– potentially worth thousands of $$$
Here in the Charleston market there are numerous high demand and “gentrification” areas where folks are virtually falling over each other with Offers that are typically in excess of appraised values in order to buy an already updated older home. In addition, numerous neighborhoods where older pre-1980 homes and particularly those built in the 1960s or earlier on a 4” – 6” concrete slab are caught in a no-sale trap as a result of FEMA’s revised flood-zoning maps. Such homes are now largely uninsurable unless the owner is in a financial position to have the house raised in order to have an elevated foundation built under it.
For those of you who are seeking to buy or build a home in which to live in areas such as Park Circle, the Isle of Palms, in the older and fast transforming Scanlonville community of Mt. Pleasant, and in many parts of West Ashley, as well as James and Johns Islands – I have a suggestion:
Within your target area, look for an older and largely unimproved property that is located on a lot that has potential and BUY it with a view to either demolishing the existing house in order to build your new home (average demolition cost $11,000) or, if your income and tax situation warrants it, CONSIDER DONATING THE HOUSE TO A NON-PROFIT AGENCY.
WHY? There are a number of Non-Profits entities who will receive a qualifying house from a donor and transport it to a location where it can be rehabbed in order to accommodate a deserving individual or family.
The $11,000 or so that YOU would typically to pay to demolish the house will usually cover the “lift” costs in raising the house and the non-profit takes care of the “lift” and removal logistics.
WHY WOUD YOU DO THAT? Because the “As-Is” appraised value of the house you are donating could become a mid-to high 5-figure TAX DEDUCTION that you can use over 5-years.
Perhaps you already own an older home and are negatively affected by the recent FEMA flood zoning. This strategy could be applicable to you and we are here to facilitate the Program and, following the removal of your existing home, build your NEW home within 5-months!
Interested? Email Bob Corrigan: Bob@cmssc.com