Burning Down the House
If you donate your house to the local fire department to burn down for practice, you can deduct the loss – as long as you donate your land too. There have been a number of cases related to this, says Charney. It’s best to tread lightly in this area and avoid “donating” your house for firemen to raze if it’s only to make room for a new one. That kind of generosity doesn’t count.
