USA 990-EZ

[sligo1798]

I represent a Veterans Organization (501 (c) 19), whose land and building were donated to our organization 70 years ago. How do we properly complete our line 23 of the 990-EZ, Land and Building? How do we accurately assess the value of the land, as I assume the building is fully depreciated, well past 39 years? The property is assessed for $275,000, but I do understand we need to utilize the book value.

Thank you for your kind assistance.

 

[kirby]

You are correct. Line 23 instructions do not want the value of the land and building - they want the BOOK VALUE of the land and buildings. So, I take it that the organization does not have a set of accounting ledgers (books). Else you could easily get the needed info from the books. I agree building is fully depreciated at this point so book = zero assuming no residual value. Land is trickier. I would get a estimate from a commercial real estate person (or two) and go with that (again has to be the estimate for 39 years ago). THEN, I would get this organization set up on an acctg ledger system so you have a set of books.