Donate Real Estate to Giving Center
A Real Estate Donation (vacant land, house, 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 unneeded property in your portfolio, a real estate donation may be the best course of action. A charitable real estate donation stands as a sensible move for individuals and corporate donors alike. The equity from your real estate donation helps Giving Center continue its mission and support many worthy causes that are in need of our help. We are here to provide you with the know-how that is necessary in conducting a real estate donation. This process will optimize any benefits for both the donor and the people whose lives will be drastically helped.
Real Estate donations to Giving Center are a tax-wise approach to giving. Call toll free 888-228-7320 to get started now.
When it comes to donating or giving back to charity, one might not consider donating real estate. Though it is not expected for every American to have an extensive real estate portfolio, those who do can significantly benefit from the financial gains, all while lending a huge helping hand to their community. Just one of the many advantages for real estate donations at this time is that the tax deduction assessment is based on the current market value appraisal rather than the original cost of the property. In addition, donors can avoid paying brokers fees by donating instead of selling property.
If you are considering a real estate donation, keep in mind the various hassles of keeping unwanted property such as property taxes, maintenance costs, income taxes, sold property, cost of legal fees, brokerage fees, estate taxes, inheritance taxes and capital gains taxes. The stress and hassle of owning unwanted or unused land can easily end when you contribute to charity and donate your real estate. Donating also saves heirs time and effort upon allocating the profits, should the will turn out potentially contentious or inequitable. Every so often, intangible benefits surface as well. On the occasion that a donated estate will bear the donor's name, the property becomes a de facto memorial.
The clear and obvious benefits of a Real estate donation to the Giving Center are quite an attractive prospect. And you can make a positive difference for others less fortunate as well. Here are some common FAQ's and facts to help educate yourself.
The real estate donation process varies for each property. There are many factors involved. Among these factors are "encumbrances" such as civil liens or collections to unpaid property taxes. We make this process as simple as possible from beginning to the end and final transfer of property title.
A Real Estate Donation to the Giving Center, whether vacant land, industrial, residential, land contracts, commercial property or farm land, provides you with a great way to enjoy what many consider an extraordinary tax deduction. If your real property asset has grown in value, or perhaps unfortunately turned into a non-producing or burdensome property in your real estate portfolio, it may be the time to consider a real estate donation to the Giving Center.
Real estate donations to the Giving Center make good sense for both individual Donors and our corporate donors. The equity from your generous real estate donation helps us continue to benefit the many individuals and programs seeking help in our communities. Giving Center will provide you with the know-how necessary to conduct a real estate donation that maximizes the benefits for both you, our generous Donor and the many individuals and Organizations we serve.
Properties held by donors for over five years are classified as long-term capital gain properties. The fair market value of the donated property can be deducted; however, your charitable contribution deduction is limited to various percentages depending on your individual gross income. Additional contribution value can, for up to five years, be carried forward. Should the property depreciate, the fair market value with reflect the loss of value. Fair Market Value is most commonly determined by an independent appraisal. Should you want to deduct the amount of money the donated property is costing you, you are allowed a deduction of fifty percent (50%) of your adjusted gross income (please check with your tax professional). This also can be carried for up to five years. The route you choose during your donation process will be dependent on the cost basis in the property donated, your tax bracket, the age and health of you, the donor, and whether you plan to make future contributions (please check with your tax professional).
The following rules are applicable to corporations making a donation of real property: Those who are involved with the corporation and the property for over a year are entitled to a deduction of ten percent (10%) of the net profit of the corporation (please check with your tax professional). The remaining surplus of donated amounts can be carried forward up to five years. Should the "Sub S" status be selected by the company, then the input allowed will be reported on the individual shareholders K1 and may be deducted for the individuals return (please check with your tax professional).
Partnerships, S-Corporations and Limited Liability Companies rules: The corporation is not eligible to claim a deduction for the property donated, but the donation passes to the individual shareholders on a pro-rated based on their percent of ownership in the S-Corporation.This is where the deduction can be made for an individual tax return. Again, this carries for up to 5 years (please check with your tax professional). Partnerships and limited liability companies abide by the same rule except that the partners or members can claim a deduction even if they have no basis in the partnership or are a limited liability company (please check with your tax professional).
Sizable, lasting tax benefits / deductions for years to come
Freedom from property taxes
Freedom from property maintenance and other obligations
Freedom from liability and insurances
Benefit of knowing that you/your business has helped others
Positive face forward to the public for your generous company
Peace of mind knowing that your property is no longer a drain or burden
Once all of the necessary documentation has been signed and authorized, Giving Center will schedule a full inspection that includes a comprehensive evaluation of the property along with an analysis of any and all factors that may potentially affect the success of the transfer of the property deed. This includes but is not limited to all books and records, as well as the title commitment.
The completion of the full inspection marks Giving Center’s final action before proceeding with the final steps necessary to take the legal and proper deed of the said donation of the real property.
Yes you can! The Giving Center considers all donations on a case by case basis. Although it is not ideal for a charitable Organization to accept a financial liability, sometimes the existing equity in a real property donation can offset that liability. We encourage you to contact us or submit your property online.
Those that want help improve the communities in which they live with idle properties, inherited properties, properties that have become a financial burden due to yearly, maintenance, HOA fees, tenant issues, insurance. The list goes on. The donation of Real Estate qualifies you or your business for a tax benefit based on the value of the property. Many take into consideration ongoing property taxes, maintenance costs, income taxes--or if the property is sold, the cost of legal fees, brokerage fees, estate taxes, inheritance taxes and capital gains taxes--it is often financially preferable to donate properties to the Giving Center. Sometimes there are intangible benefits as well. Properties that are idle, lacking positive cash flow and are assets that will never be anything more than a liability or reach any useable potential. Consider those fully depreciated properties that do not serve the financial interests of your personal financial goals or business in the future or uninsured properties that are more a hassle and a liability financially to continue to maintain.
A life estate is promisingly ideal for large, trophy properties that leave their heirs unable to afford the enduring conservation and property expenses. This allows families, which can no longer enjoy a home, to enjoy what the charity provides them in turn for donating their property -hard cash. Real Estate donations result in immensely beneficial tax deductions for the donor while at the same time allowing them to give back to their community and make a difference as an outcome of their charitable acts. Essentially, a donation of real estate to Giving Center can reduce your tax burden and provide you with the benefit of savings that comes from relief of the maintenance of your property. You can also avoid capital gains taxes on highly appreciated properties with your charitable donation of real estate. Donors can even enjoy the reimbursements of donating a home but still indulge in all of its amenities during their lifetime. By creating a life estate, homeowners enable themselves to live in the house they wish to donate while understanding that the property title will transfer to a given charity after their passing. Their tax deduction, however, will be given to them during the time of donation, and depending on the property and its income potential, may even obtain lifetime annuity. This provides the opportunity to eliminate the tax burden family members may have to deal with after their loved one’s death.
Our friendly staff of volunteers at Giving Center will happily assist with any questions; just contact us by phone at (888)-228-7320 or fill out our easy online form to begin the donation process. Upon contacting you, the donor, our charity will schedule an appointment to assess the property donation. Donate to significantly minimize legal and tax liabilities and attain financial gains as you support The Giving Center and its many charitable missions. Make a Difference today and contribute to our charitable cause.