Church purchasing Duplex from a Trust in CA

[Wayne Tomlinson]

Frederick wil not need a letter from the church.
Since the work is pro bono, there will be no income and no value to deduct.

To bring IRS in, he would have to bill, be paid and then make the donation.

On the other hand, if he is counting on laying up stores up in heaven, then he needs to persue that with some where other than on this forum, although, there are many here who would offer advise, I think

Wayne Tomlinson

 

[mikerorwick]

Thanks to all for the input!

PE said it well, just appraise as a duplex that needs repairs.

The seller has presented me with a detailed cost estimate from a contractor, cost for all repairs to bring into average condition is 50K. I'm planning on completing the appraisal with an 'as is' and 'as repaired' value. As repaired value would be 500K, As is would be 450K(using the contractor's estimates). I will definitely add disclaimers and commentary explaining so the reader understands how each value was derived. I know Josh mentioned the Entreprenurial profit part of the equation, which is not reflected here, that's the only part that concerns me. However, that may be a different amount for any given buyer. If I were the church, I would want to negotiate a lower purchase price than 450K(due to the entreprenurial profit), however, that worth would seem to be something negotiated between the buyer and seller.

Any last minute thoughts? I'll be submitting this later on Tuesday.

Thanks again!