Historic Boutique Hotel , 225 rooms, selective deconstruction of front desk, restaurant, exercise room and FF&E
Donation Value of Materials
$1,020,000
Effective Tax rate
40%
Tax Savings ($1,020,000 x 40%)
$408,000
Cost of selective decon and cleanout fee
$87,250
Charitable donation package (appraisal, IRS Form 8283)
$25,000
Net profit to owner
$295,750
Bel Air, MD
Remodeled 101 room hotel after purchase, FF&E
Donation Value of Materials
$289,000
Effective Tax rate
40%
Tax Savings ($289,000 x 40%)
$115,600
Cost of cleanout
$27,650
Charitable donation package (appraisal, IRS Form 8283)
$9,995
Net profit to owner
$77,955
Fredericksburg, VA
Changed flag to Red Roof Inn, 80 rooms FF&E
Donation Value of Materials
$261,000
Effective Tax rate
40%
Tax Savings ($261,000 x 40%)
$104,400
Cost of cleanout
$19,000
Charitable donation package (appraisal, IRS Form 8283)
$9,995
Net profit to owner
$75,405
These results are not uncommon. They are however heavily influenced by the Scope of Work as well as the condition, quality, and quantity of material available for donation.