Tax Benefits of Donating Real Estate in New York

Individuals

The following rules apply if the Donating property is owned in your own name, with your spouse or other persons:

If you have held the property for more than one year, it is classified as long term capital gain property. You can deduct the full fair market value of the donating property. Your charitable contribution deduction is limited to thirty percent (30.00%) of your adjusted gross income.

Excess contribution value may be carried forward for up to five years. If the property has been depreciated, the fair market value must be reduced by its accumulated depreciation through the date of contribution. Fair market value is most commonly determined by an independent appraisal.

If you elect to deduct your cost basis of the donating property you are allowed a deduction of fifty percent (50.00%) of your adjusted gross income. Excesses here again can be carried forward up to five years. Which method you elect is dependent on the cost basis in the property donating, your tax bracket, the age and health of the donor and whether you plan to make future contributions.

Corporate Donors
The following rules apply if your contribution is made by a corporation, these rules apply:

If you have a controlling interest in the corporation and the property has been held for more than one year, the corporation can deduct up to ten percent (10.00%) of the net profit of the corporation.

Excess contribution amounts can be carried forward up to five years. The fair market value here must be reduced by the amount of accumulate depreciation.

If the corporate has elected "Subchapter S" status, then the contribution allowed will be reported on the individual shareholders K1 and may be deducted on the individual return.

Partnerships, S-Corporations and Limited Liability Companies

The following rules apply if your contribution is being made by a partnership, S-Corporation or limited liability company:

The corporation may not claim a deduction for the property donating. Rather, the contribution passes to the individual shareholders on a pro-rated based on their percent ownership in the S corporation. The shareholder can claim this deduction on their individual tax return. The same limits and carry forward rules will apply.

Partnerships and limited liability company contribution rules are the same as an S corporation with one exception the partners or member can claim a deduction even if they have no basis in the partnership or limited liability company.

* Please consult your CPA/Attorney for your specific tax benefit.

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Who Can Donate to Charities? and What Kind of Real Estate Can be Donated in New York?

Who Can Donate?

Those that want to help charities.
Anyone that desires an IRS tax write-off.
Businesses with abandoned properties.
Fully depreciated properties Uninsured catastrophes.

What Kind of Real Estate Can be Donated?
Residential
Industrial
Apartments
Any Type of Mortgages
Properties Subject to Life Estates
Commercial
Vacant Land
Hotels
Any Type of Land Contract
Sandwich Leases

Frequently Asked Questions by People looking to Donate in New York

When will I know if charity is willing to accept my New York donation?

Upon the initial inspection, our professionals will be able to determine if property is an acceptable donation. From there, we will make a recommendation to the charity or Church.

What if my New York property is not accepted?

After the property inspection, the Charity or Chuch reserves the right to terminate the Donation Agreement and you as the donor along with Donating Real Estate shall have no further rights or obligations to each other.

Who pays the expenses?

Expenses incurred during the inspection period such as title insurance, property insurance, environmental testing, probate or tenant eviction issues and costs to secure the property are absorbed by Charity if the property is not accepted. There is no charge to the donor.

How long does a New York donation process typically last?

The average donation period ranges from 30-120 days, beginning from the initial contact to the transfer of property title. However, the donation period may be extended on a case-by-case basis if any minor delays or issues arise regarding a specific piece of property.

What costs will I incur during the New York donation process?

You are responsible for all of the regular costs associated with the property until the acceptance of property by the charity. This includes all taxes, bills, and mortgage. You will also be responsible for property maintenance until charity closes donation transaction.

What if I am missing important paperwork?

Because the closing takes place through a title company or an attorney, a title search will be performed so that all the necessary paperwork will be obtained in order to proceed with the closing.

What is a simultaneous closing?

A simultaneous closing occurs when the donor conveys the property title to charity, and then after a short period, the charity transfers the title to the new property owner.

Do I have to attend the closing?

No, by the time of the closing, you will have already signed the necessary paperwork. On occasion, there may be additional issues that need to be taken care of usually in regards to the title search. Usually if this occurs, it is just a matter of signing additional paperwork and the issues can be resolved before the actual closing.
At what point am I no longer responsible for the property?

The donor's responsibility ceases at the end of acceptance of the property by the charity.

Can I make a partial donation?

Yes, some of our donors have found it more beneficial to give a percentage of the property to the charity.

Check out article on Tips for Donating Real Estate in New York:
http://donaterealestatenewyork.blogspot.com/2009/04/donate-real-estate-new-york-michigan.html

Donate Real Estate, New York, Michigan

Tip for Donating Real Estate, New York, Michigan

Are you holding onto New York property that fails to yield annual revenue, when you could be enjoying a generous tax savings? While holding on to depreciating property, at the same time, you may be holding on to a considerable federal tax deduction for you as well as a valuable asset to a charitable organization.

In New York there are many unwanted properties simply because they are unaware of their options. In numerous circumstances, selling is not ideal for unproductive property due to the hefty costs involved that overshadow the actual property worth. Because of this, many people hold on to idle real estate for lack of a better alternative, and are frustrated paying excessive costs without seeing any return on their investment. But for all those frustrated, there's hope. Donating Real Estate can offer you the solution you have been waiting for.

A New York property donation is proven time and again as the best alternative to selling, due to the quick liquidation of assets, numerous tax breaks, and opportunity to benefit charitable foundations. Everyday, more people are discovering the ease of donating property through Donating Real Estate. We are an organization that specializes in handling all of the aspects of the real estate donation process for individuals, corporations, and charities. We are dedicated to ensuring that property donation is a very positive and rewarding experience for all.

Whether you are an individual or corporation considering real estate donation or a charity in need of help processing contributions you receive, Donating Real Estate can help. We continuously guide individual donors through the process by offering our expertise as well as managing the details that may otherwise seem overwhelming. We also help corporations both large and small liquidate property holdings in a timely manner to avoid conflict with government regulations. Additionally, we assist many nationally renowned charities facilitate the generous gifts that they are offered. These charitable foundations have been able to accept more donations and thus generate more revenue by allowing us to handle the real estate contributions they receive instead of processing the donations in-house.

Regardless of the overall condition of your property, Donating Real Estate can help you obtain the most value for you and a charity in need. We have helped many people donating nearly every type of property, each ranging in value. If you're seeking a way out of unproductive real estate, or just looking to Donating a generous piece of property, then rely on Donating Real Estate for the successful completion of the charitable giving process.


Call Donating Real Estate Consultants, LLC at 1-877-877-7411