The Solos hired Storm and Trooper Construction Company (S&TCC) to repair and remodel the existing home. Force Architectural and Engineering was retained to perform feasibility and design for the renovation. However, their investigation revealed the vermin infested and termite eaten home on the property that had been built a long, long time ago. Forces lead architect Yoda warned the Solos that the home was too old to be rehabbed and the cost prohibitive. It seems that the old lakefront home never really fit the Solos entertaining and galaxy trotting lifestyle. So, they decided to demolish the home and built their dream stone and log cabin. In addition, they wanted a hanger and landing strip for the Millennium Falcon and Millennium Falcon II.

S&TCC estimated that it would cost $25,000 to $50,000 to demolish the home. All the necessary permits to demolish the home were obtained from the Village of Mos Eisley but Han balked at the cost of demolition. Han and Leia donated the home to the Mos Eisley Rebellion Fire Departments (MORFED) for a training exercise. On October 1, as part of fire prevention month, MORFED burned down the structure and then put out the fire. MORFED charged Han and Leia $2,000 to haul away the burned out remains of the old home.

What are the tax issues involved?