We are a 501C3 tax-exempt org. Meaning your donating, gifts, and or services would greatly help and provide for the family members(Clients).
IRS Tax Deductible Property Donations to Charity
A Donation, whether vacant land, industrial, residential, land contracts, commercial property or timeshare, provides you with a great way to enjoy what many consider an impressive tax deduction.
Real estate donations make good sense for both individuals and corporate donors. The equity from your real estate donation helps us continue to benefit the many commendable causes we support. Real estate donation that will optimizes the benefits for both you, the donor, and those we serve.
What Can A Real Estate Tax Deduction Do For You?
These rules may apply if the donated real property is owned in your own name, with your spouse or other persons (Please check with your tax professional):
If you have held the property for more than one year, it is classified as long-term capital gain property. You can deduct the full fair market value of the donated property. Your charitable contribution deduction is limited to various percentages of your adjusted gross income. Excess contribution value may be carried forward for up to five years. If the property has been depreciated, the fair market value must be reduced by its accumulated depreciation through the date of contribution.
Fair Market Value is most commonly determined by an independent appraisal. If you choose to deduct your cost basis of the donated property you are allowed a deduction of fifty percent (50.00%) of your adjusted gross income (Please check with your tax professional).
The following rules apply if your charitable donation of real property is made by a corporation:
If you have held a controlling interest in the corporation and the property has been held for more than one year, the corporation may deduct up to ten percent (10.00%) of the net profit of the corporation (Please check with your tax professional).
If the corporate has elected “Sub. S” status, then the contribution allowed will be reported on the individual shareholders K1 and may be deducted on the individual return (Please check with your tax professional).
Partnerships, S-Corporations and Limited Liability Companies.
The following rules may apply if your contribution is being made by a partnership, S-Corporation or limited liability company:
The corporation may not claim a deduction for the property donated. Rather, the contribution passes to the individual shareholders on a pro-rated based on their percent ownership in the S corporation. The shareholder can claim this deduction on their individual tax return. The same limits and carry forward rules will apply (Please check with your tax professional).
Partnerships and limited liability company contribution rules are the same as an S corporation with one exception the partners or member can claim a deduction even if they have no basis in the partnership or limited liability company. (Please check with your tax professional)
Click here to download IRS 8282 Form: Donor Information Return or click here for IRS 8283 Form: Non- cash Charitable Contributions.
Have you inherited a residence? Donate now and bring down estate taxes. Capital gains taxes draining your bank account? Rid Yourself of a Problem, Donate Property. Investment property Not Producing?
What happen to donations?
What happens to my property after it is donated? We also fill in the cracks left by underfunded social service agencies, shelters, food banks etc. We receive hundreds of requests per week from families and individuals seeking a helping hand, and we do everything we can to help.
Who Should Consider Donating Real Estate?
Those that want to help improve the communities in which they live. Ideally, this should be the greatest consideration.
Businesses with properties that are idle, lacking a positive cash flow or assets that will never reach any useable potential.
Fully depreciated properties that do not serve the financial interests of the donor.
Uninsured catastrophes that are more a detriment financially to continue to maintain.
Size of Tax Deduction Determined by Current Market Value
One of the advantages to the donor is that the size of the tax deduction is determined by the current market value of the property, as opposed to the cost of the property when it was purchased. So, if you purchased your property in 1988 for $112,000 and today it is worth $412,000, the current value is what you base your tax deduction on. (Also, by donating a property instead of selling it outright, real property donors can avoid paying brokers’ fees.) Real Estate Tax Deduction.
Please consider providing a great help and need in and around our city. You can also make a on time or yearly commitmnet by just donating.
Thanks and Blessings.