A Real Estate Donation, whether vacant land, industrial, residential, land contracts, commercial property or timeshare, provides donors the means to enjoy what may be a substantial tax deduction all at the cost of helping others. If your real property asset has grown in value, or unfortunately turned into an effete property in your portfolio, a real estate donation may be the most advantageous course of action to take.
Real estate donation proves sensible for individuals and corporate donors alike. The equity from your real estate donation helps Real Estate Donation continue its mission and support the variety of commendable causes that require our help. Real Estate Donation is here to provide you with the know-how necessary to conduct a real estate donation that optimizes the benefits for both the donor and the people whose lives will be changed by the those who donate real property.
Download your IRS form 8283 here. If you have a donation of a house, farmland, warehouse or any other type of real estate worth $5000 or more you will need this form along with your 1098C and the donation receipt we gave you on the day of donation (or will give you on the day of donation if you have not donated yet).read more
Download your IRS form 1098C here. Use this form for all types of property donations made to charity. Donate with us and we will provide you this form free of charge! Your 1098C forms, along with all other necessary donation forms are always provided by us free of charge! Use this form as proof of your IRS federal tax deduction eligibility.... ..1098-c
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). Excesses here again can be carried forward up to five years. Which method you choose to follow is dependent on the cost basis in the property donated, your tax bracket, the age and health of the donor and whether you plan to make future contributions (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). Excess contribution amounts can be carried forward up to five years. The fair market value here must be reduced by the amount of accumulate depreciation. 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)
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