Tax Information About The Real Estate Donations
Donate real estate today, the advantages are many. Donors receive a receipt for a tax deduction equal to the highest real estate appraisal of the donated property, avoiding the issues, process and expenses associated when selling real estate.
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 (Please check with your tax professional). Excesses here again can be carried forward up to five years. Which method you choose to follow is dependent on the cost basis in the property donated, your tax bracket, the age and health of the donor and whether you plan to make future contributions (Please check with your tax professional).The following rules apply in order to establish a “fair market value” acceptable to the Internal Revenue Service (IRS): The IRS requires that all property donated that has a value of five thousand dollars ($5,000.00) or more have a “qualified appraisal” to establish a “fair market value”. The appraisal must be performed by a “qualified appraiser” and must be attached to Form 8283 “Noncash Charitable Contributions” and made a part of your tax return.
Please check with your tax professional how the tax write off will be benefit you. Each case is different.