By donating or selling your real estate to a nonprofit, not only do you commit a noble deed, but you also get to enjoy a variety of benefits.  Please consult your financial advisor and real estate lawyer prior. If you wish to donate real estate, you will need a qualified appraisal of the property. Please contact susanw@habitatpowhatan.org for more information. 

 

Bargain Sale

A “bargain sale” is the act of selling the property to a charity for much less than the property’s market value. While you will be taxed on the gain, you may, however, ask for a real estate donation tax deduction, which will be the difference between your property’s market value, and the price you sold it for. 

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Direct Gift

You can always opt for donating real estate as a direct gift. In this case, the deed or title will be transferred from you to the charity. As the donor, you will also be eligible for a real estate donation tax deduction. This deduction will be equal to the fair market share of your property, and it may be carried forward for five whole years. You also avoid the Capital Gains Tax, which you would have to pay if you decided to sell your property. Please consult your financial advisor first.

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