For Homeowners

RUN THE NUMBERS

Whether you’re a private homeowner or developer improving residential or commercial real estate, you may have enough basis in your real property (the existing improvements to your real estate) to cover your entire cost of deconstruction, thereby saving you significant dollars, while not contributing unnecessarily to our waste stream.

The example below contrasts the typical cost comparison a donor-candidate (you or your client) evaluates when considering our Deconstruction Solution option. In this hypothetical match up, deconstruction clearly wins! Why not do the math for your project?

The evaluation steps are free!

Line Item Cost Desconstruction Demolition 1 Bring down house/building and remove foundation $ 37,000 $ 15,000 2 Cost of Appraisal $2,500 - 3 Total Up Front Costs $39,500 $15,000 4 Appraised Donation Value $87,000 - 5 Your Net Tax Liability Reduction $34,800 -   Total Up Front Costs (from Line 3) Subtract Tax Savings (from Line 5) $39,500 $(34,800) $15,000 - 6 Actual Cost After Tax Savings $4,700 $15,000 7 Deconstruction Solutions' New Savings = $10,300

Line Item & Cost Explanations

Figures above are composite averages for a 2500 square foot single family dwelling in Southern California. Actual deconstruction or demolition costs and material valuation for your project is likely to be different.

Line 1	Costs for both the deconstruction and traditional demolition scenarios, above, include the removal of all debris and hardscape identified in your project’s scope of work. Also included as part of deconstruction’s costs are all material transportation costs and Deconstruction & ReUse Network’s coordination fees. Costs for both service scenarios will vary due to location, site access, disposal costs, and volume of hardscape and foundation removal.
Line 2	Appraisal costs vary. The appraiser you choose may charge more or less depending on the size of the appraisal and its location. Initial consultations with most appraisers are without charge. Ask each appraiser in advance about their fees and factor these fees into the cost of the Deconstruction Solution.
Line 3	Add lines 1 & 2 together. This is your total out of pocket expense.
Line 4	Assigned donation values will consider many factors. Some of these factors include: project size & scope, foundation type, construction quality, past improvements, condition of improvements, basis, depreciation, replacement cost, and fair market value, among others. Each donation is unique.
Line 5	Multiply your valuation by your tax bracket and always consult your professional accountant. This example assumes a 40% combined state and federal tax bracket. The owner reduces their contribution base (or adjusted gross income) by $87,000 dollars, subsequently reducing their net income tax liability by $34,800 dollars.
Line 6	Subtract Line 5 from Line 3. This is your total cost for deconstruction compared to traditional demolition.
Line 7	After taxes, the owner has paid $10,300 dollars less than if they’d chosen traditional demolition.

2006 - 2007 Donation Valuations