Making A Land Donation Can Save You on Taxes

Not every charity is equipped to receive a land donation. For some charities, land ownership is a burden, if they do not have a specific use for it, they may need to pay to own it and to sell it. Giving Center, on the other hand, is in the business of owning and utilizing land and would love to take your land donation.

Before Giving Center can accept your donated land, it must have a clear title. If you have ownership issues related to inheritances, you may need to work alongside a Giving Center representative to resolve the issues. Since you may only deduct the fair market value (FMV) of your land, you will also need to get it professionally appraised to establish a value in order to receive the best tax deduction possible.

With Giving Center, transferring land to charity is relatively simple. You will be working with Giving Center’s legal team to draft a deed, which will give the charity ownership of the land. Once you have successfully made the donation, you may enter its value with your other charitable contributions on the Schedule A of your Form 1040 tax return. You will also have to attach Form 8283, which is where more detailed information on your non-cash contributions are found.

Limitations and Exceptions

The IRS applies some limitations that can cap the value of your land donation, whether you donate real estate or anything else. You have to donate to an IRS-recognized charity. Giving Center is an IRS approved 501(3)3 charity organization, This means your charitable land donation counts as a tax-deductible.

Transferring the Land

You will need to transfer ownership of your land to the charity. This is a legal maneuver you may want to consult your attorney about. You may need to find out if you need to get an appraisal of your land to determine its fair market value, which is only typically needed if the value of the donation exceeds $5,000. Appraisers must meet certain guidelines, such as their certification requirements.

Other Ways To Donate Real Estate

Giving Center can also help you out with other types of real estate donations such as a house donationland contract donationfarmland donationcommercial property donationindustrial property donationrental property donation.

DOn’t Have Real Estate To Donate?

That’s not a problem! Giving Center accepts a wide variety of charitable contributions including but certainly not limited to:

Donate a boat, Donate a Plane, Donate a Car, Donate Commercial Vehicles, Donate Computers, Donate Collectibles, Make a Financial Donation.

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