During takeoff at about 200' above ground level over the runway's departure end, the aircraft's engine suffered a total loss of power. The pilot performed necessary emergency procedures. He entered a power-off forced landing descent and made a right turn to the best available landing area. The aircraft landed hard, bounced, and collided with a hangar, separating the left wing from the fuselage. An FAA safety inspector examined the aircraft on-scene. He drained approximately 1/4 pint of fuel out of the intact right wing. The left had considerably more fuel and had lost fuel during impact. The aircraft's engine was removed from the aircraft for further examination. The engine started and ran at various power settings with no problem. The certified flight instructor and his student pilot in oral and written statements, did not indicate that the flight instructor changed the fuel selector from the right tank to the left tank during the flight.