The Benefits of Donating Real Estate

Описание: In this video we will guide you through the benefits of donating your property.

A Real Estate Donation, of any type, allows you to enjoy an impressive tax deduction while avoiding capital gains tax incurred from real estate sales.
The amount of your deduction will depend on whether the real estate is a short-term asset or a long-term asset.

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https://donatemyhouse.org/benefits/

Public charities, like Donate My House, provide an excellent real estate donation outlet, as we understand how to evaluate, process, and liquidate various types of real estate.

If your property is owned in your own name, with your spouse or others, and you held the property for over one year, it can be classified as ‘long-term capital gain’ property. This means that you can deduct the full fair market value of the donated property. 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.

Each method is dependent upon the cost basis of the property donated, the donor’s tax bracket, age, and health, and whether you plan to make future contributions.

If you hold a controlling interest in the corporation and the donated property has been held for more than one year, the corporation may deduct up to ten percent of the net profit of the corporation. In this case, fair market value must be reduced by the amount of accumulated depreciation.
If the corporate donor has elected “Sub. S” status, then the contribution will be reported on the individual shareholders K1 and may be deducted on the individual return.

Generally speaking, deduction amounts are determined in the following manners:

For short term assets, The deduction is equal to the lesser of the property’s fair market value or its cost basis.

For long term appreciated assets,The deduction is equal to the fair market value of the property, though limited to 30 percent of the donor’s adjusted gross income.

When you sell your property or real estate asset at a profit, you are required to pay capital gains tax. By donating your property to a non-profit organization, you alleviate the pain point of having to pay the taxes, actually receive a tax benefit instead, and avoid the stress of having to deal with a host of financial professionals and tax bureaucracy.

Our donation process is cost-free and we handle all the necessary mailing and paperwork so all you have to do to get rid of your property is sign and wait for your tax deduction.

Once the property closes, we assume all taxes and associated maintenance fees, meaning you can continue on without any worries.
The donation process is easy and streamlined to maximize donation efficiency. In all, you can expect the process to last 3-6 weeks from the moment you contact us, until we accept your property, and the documents are finalized.

Donating your property is truly a charitable act and your donation goes to help support child development through education, mentorship, and other types of programming. Help our future generation today!

I hope this video answered some of your questions and we look forward to helping you during your donation process.