Donating your unwanted real estate to Giving Center is a grand gesture. Giving Center is an IRS approved non profit that operates nationwide! We are prepared to handle any type of real estate; whether you want to donate land, donate a home, donate commercial property, donate industrial property, or donate rental property. While you are alive, feel free to contact Giving Center and make your desire known. You may be surprised at the answers you get!Public or Private?There are tax implications to consider when making donations. When donating to Giving Center you can usually make a tax deduction for the fair market value of the property. We are happy to help with any questions or concerns you may have! Want to speak to a live representative? Give us a call toll free (888)228-7320 today!Pay it off or keep it mortgaged?Most charities do not want the hassle of mortgaged property. This can open up business tax income and they just don’t want the bother or the expense. So if possible pay off any mortgages or leans on the property before making the donation. Want to know if donating real estate with a mortgage can benefit you? Visit us here.DocumentationFailing to document the transaction properly, dotting all the I’s and crossing all the T’s can result in overvaluation penalties and cause problems down the road. You can lose your deduction this way too. Most charitable donations of real estate require a qualified appraisal. The IRS requires form 8283, Noncash Charitable Contributions. This form must be signed by the appraiser and filed with a federal tax return. If the property value is over $500,000.00 then include the appraisal report too. Giving Center will walk you through the steps and provide you the documentation and tax documents you need. The Charity Sells the PropertyIf the charity decides to sell the property within the following three years then it has to report the sale to the IRS. If the price they got is a lot less than your deduction claim the IRS will probably challenge your deduction. So in order to avoid any such problem, make sure your appraisal is well documented. Selling the property allows the charity to realize cash from the transaction and put it to work towards their cause.Land Ho!Charities don’t always have a use for the land, but Giving Center has the staff to sell it. In order to donate land it must have a clear title and you must pay off any mortgage on the land. A professional appraisal is required to determine fair market value since this is the only amount of the deduction you can take.Transfer of land is pretty easy. Normally you work with the charities’ legal guns to draft a deed giving them ownership of the land. The land value is entered on for 1040 tax return, schedule A and you also need to attach form 8283 which is the detail of non-cash charitable contributions required by the IRS.Limits and ExceptionsLike everyone else, the IRS has rules that can cap the amount of your deduction.
- Your donation must to go to an IRS-recognized charity. Giving Center is an IRS approved 501c3 registered non profit. Visit us here for our EIN.
- The cap in 2018 was either 60 or 30 percent and based on adjusted gross income for the year. Factors involved include the type of charity and many other items considered by the IRS. If you go beyond the cap then the amount is carried forward for up to five years. But, you should check with your accountant to make sure there have been no recent changes.
- When the price goes up, the limits get stiffer. If the price of your property increases, then the IRS limits donations of appreciated property to 20 percent of your adjusted gross income for that tax year. Again, always check with your accountant.
Other Things to Remember♦ Capital gains on short-term appreciated assets are only taxed at regular rates.♦ Capital gains on long-term assets are taxed at a rate between 0 and 23.8% which of course depends on your income level.♦ Charitable Remainder Trust (CRUT) is a way for donors with property assets that have appreciated greatly to preserve future income. The trust is not taxable so even when the trust sells the property the full amount of the sale can be realized and reinvested into the trust.♦ Direct gifts are a simple method to donate real estate. In this case the deed is simply transferred to the charity. As a donor you get the fair market value deduction and can carry it forward for five years if necessary. In this case you avoid capital gains taxes that result when you sell the property.♦ Bargain Sales are yet another way to accomplish the donation. This is when the donor sells the property to the charity at a discounted rate, i.e. less than fair market value. The donor gets a deduction in the amount of the difference between the fair market value and the actual sale amount.Ibelieveworld.or is ready to accept your real estate property donations and we can work with you to accomplish this in the most beneficial way to both parties. Please complete our form on the web site so we can contact you to discuss details today.Remember that donating real estate is a big step and there are tax implications that you may not be aware of or that are not outlined here. It is always advisable to discuss this type of donation with a tax specialist prior to making arrangements with your desired charity. Appreciated property donations are always scrutinized more by the IRS, so keeping all your ducks in order is a paramount concern.g