Donate Your Real Estate to Charity

Our goal

We try to instill confidence by tailoring our approach to each donor to receive the utmost support throughout the property donation process.

We do this by remaining transparent throughout the donation and managing all the logistics and paperwork.

On this in-depth page, you will learn:

Donate Your Real Estate to Charity

Our goal

We try to instill confidence by tailoring our approach to each donor to receive the utmost support throughout the property donation process.

We do this by remaining transparent throughout the donation and managing all the logistics and paperwork.

On this in-depth page, you will learn:

Donate real estate to charity

Our goal

We try to instill confidence by tailoring our approach to each donor to receive the utmost support throughout the property donation process.

We do this by remaining transparent throughout the donation and managing all the logistics and paperwork.

On this in-depth page, you will learn:

How to donate real estate

Donating real estate to charity and us accepting your real estate is easier than ever before.

We take care of all the necessary charity and real estate paperwork, and the mailing, at no cost, saving you time and hassle, while ensuring maximum tax benefits.

Just sit back, relax, and rid yourself of unwanted property!

Note: You should always make sure that you are donating to a 501(c)(3) public charity.

The IRS has a tool to help you find such charities.

You can also use a website like Charity Navigator to find such charities.

We have a 501(c)(3) status.

The Process

  • Takes 3-6 weeks
  • The cost is free

Steps to take

  • Tell us about your property – Either call us at 1 855 753 2099 Or fill out our easy donor application form here
  • Our expert team reviews each property to see if it’s a good fit.
  • Sign the closing documents and return them to us.
  • Leave the rest to us as we take over all other property responsibilities, sending you a tax-deductible receipt.

Reasons to donate real estate

  • For the sake of donating and helping the community
  • There is a difficulty in selling your real estate and you would like to get rid of the burden
  • You want to donate but don’t fully own the property
  • There are multiple properties under your name and you want to lower your tax bill

When you decide to donate your real estate to us – we guide you through the whole process to make it as simple as possible for you.

3 main decisive factors for donating or not

  • The tax deduction
  • Business questions
  • Understanding if this makes sense financially

When our non-profit organization accepts your property, you will be doing more than getting rid of unwanted property, but also funding year-round youth development and educational programs.

Reasons why people don’t donate

  • People are unaware of the fact that they can donate
  • The process is complex (charities like us make it easy for the donor)

The benefits of donating real estate

A Real Estate Donation, whether vacant land, industrial, residential, or commercial property 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 (held one year or less) or a long-term asset.

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.

Individual Donor Benefits

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.

Corporate Donor Benefits

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.

Deduction Determination for a Real Estate Donation​

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

Short-term assets

The deduction is equal to the lesser of the property’s fair market value or its cost basis.

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.

Avoiding Capital Gains Taxes​

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.

No Fees​

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 to sign and wait for your tax deduction.

And once the property closes, we assume all taxes and associated maintenance fees, meaning you can continue on without any worries.

It’s Fast

We ensure that when you donate with us, that your 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.

Make a difference

Your donation will go towards helping kids succeed in school, life & beyond.

Donating your property is truly a charitable act and, with us, your donation goes to help support child development through education, mentorship, and other types of programming.

Help our future generation today!

The 3 main ways to donate real estate

Real Estate Gift

The donor transfers the deed or title to the charity and receives a tax deduction equal to the fair market value of the donation while avoiding paying capital gains tax that would result from selling the real estate.

CRT

Donors with highly appreciated property should use CRTs to accomplish their goals and ensure future income.

Other than receiving an immediate tax reduction upon donating real estate to a CRT, this trust is tax-exempt and the proceeds from the liquidated property can be fully reinvested into it.

Distributions from the CRT to its beneficiaries are determined annually based on a fixed percentage of the value of the CRT’s assets.

At the end of the CRT’s life, the remaining assets are distributed to designated charitable organizations.

Bargain Sale

The donor sells real estate to a charity for less than the property’s fair market value.

As the donor, you are taxed on your gain and may claim a tax deduction equal to the difference between the property’s fair market value and its selling price.

Important points for donors

When you should contact us / Important notes

  • Overvaluation of the property – This may cause penalties. Real estate valued at $5,000 or more needs to have a qualified appraisal and if it’s over $500,000, the appraisal needs to be filed with your taxes.
  • If the necessary documents are false, missing, or have mistakes – you may lose your deduction.
  • There may be difficulties with getting the full tax deduction on your donated real estate if there is a contract to sell the property.
  • If you are dealing with depreciation of the property
  • Bargain sales
  • Properties that have a mortgage or a lien on them

Charities Perspective – Things that we watch out for when accepting real estate donations

  • The amount that charities spend on the process can result in large losses.
  • Legal
  • Property liabilities
  • Taxes (while holding the property)

Our charity

DonateMyHouse helps fund year-round youth development and educational programs while providing donors with an efficient, streamlined  and easy experience.