26 U.S.C. § 280B — Demolition of structures

submitted 50 years ago by Pub. L. 94-455 to r/title-26-INTERNAL-REVENUE-CODE · 74 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law blocks tax deductions when a building gets torn down. Neither the demolition cost nor any loss from it can be deducted. Instead, both amounts get added to the value of the land itself.

When a building or other structure gets torn down, two rules apply. First, the owner or lessee cannot deduct anything spent on the demolition itself, and cannot deduct any loss from tearing it down. Second, both the demolition costs and that loss instead get added to the capital account for the land where the structure stood — meaning they become part of the land's cost for tax purposes, rather than an immediate deduction.

the actual law source: uscode.house.gov ↗public domain

In the case of the demolition of any structure—

(1)

no deduction otherwise allowable under this chapter shall be allowed to the owner or lessee of such structure for—

(A)

any amount expended for such demolition, or

(B)

any loss sustained on account of such demolition; and

(2)

amounts described in paragraph (1) shall be treated as properly chargeable to capital account with respect to the land on which the demolished structure was located.

Source credit: (Added Pub. L. 94–455, title XXI, § 2124(b)(1), Oct. 4, 1976, 90 Stat. 1918; amended Pub. L. 95–600, title VII, § 701(f)(5), Nov. 6, 1978, 92 Stat. 2902; Pub. L. 96–541, § 2(b), Dec. 17, 1980, 94 Stat. 3204; Pub. L. 97–34, title II, § 212(d)(2)(C), Aug. 13, 1981, 95 Stat. 239; Pub. L. 98–369, div. A, title X, § 1063(a), (b)(1), July 18, 1984, 98 Stat. 1047.)

history & why it existsrecord from the source credit

1976Enacted · Pub. L. 94-455 · 90 Stat. 1918
1978Amended · Pub. L. 95-600 · 92 Stat. 2902
1980Amended · Pub. L. 96-541 · 94 Stat. 3204
1981Amended · Pub. L. 97-34 · 95 Stat. 239
1984Amended · Pub. L. 98-369 · 98 Stat. 1047

A history note hasn’t been published yet. The record shows enactment by Pub. L. 94-455 on 1976-10-04.

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