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!
Deconstruction
Solution Cost Comparison
Here
is an example of the cost /benefit differential when comparing demolition and deconstruction.
Figures below are
composite averages for a
typical 2,200 sq. ft. Bay Area project. Actual deconstruction or demolition costs and material valuation for
your project are likely to vary.
|
Item Cost
|
Deconstruction
|
Demolition
|
Further Explanation
|
|
Cost of bringing down the structure and removing debris
|
$44,000
|
$22,000
|
This amount includes removal of all
debris, foundation and/or hardscape identified in the project scope,
transportation costs, and coordination fees.
|
|
Cost of Appraisal
|
$2,500
|
N/A
|
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.
|
|
Total Cost of
Project/Upfront Costs
|
$46,500
|
$22,000
|
|
|
|
|
Appraised Donation Value
|
$88,000
|
N/A
|
Assigned
donation values are based upon a variety of factors including, but not limited
to, 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.
|
|
Net Tax Liability Reduction
|
$35,200
|
N/A
|
This
example assumes a 40% combined state and federal tax bracket. Here, the owner
reduces their contribution base (or adjusted gross income) by $88,000
dollars, subsequently reducing their net income tax liability by $35,200
dollars.
Always consult your professional
tax adviser to determine personal tax implications.
|
|
|
|
Total Cost of
Project/Upfront Costs
|
$46,500
|
$22,000
|
Figure taken from above
|
|
Less Tax Savings
|
- $35,200
|
N/A
|
Figure taken from above
|
|
Actual Cost of Project
after Tax Savings
|
$11,300
|
$22,000
|
|
|
|
|
Net After-Tax Savings
|
+$10,700
|
After
taxes, the owner has paid $10,700 dollars less than if they had chosen
traditional demolition.
|
2006 - 2007 Donation Valuations
|
|
|
