Commercial Real Estate Donation

Find out about donating commercial real estate, the steps required, benefits and FAQ.
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Overview

When putting up your commercial real estate on the market, you have a responsibility to manage and sell the property professionally and in compliance with the local tax code.

This type of process means having to deal with a variety of fees and other liabilities often associated with the property and can include dealing with:

  • Rent
  • Environmental
  • Cleanup taxes
  • and other fees

Once you actually make the sale, you are subject to capital gains tax on the earned revenue of the sale.

By donating your property, you avoid all responsibilities and receive tax deductions.

Types of Commercial Properties You Can Donate

  • Buildings
  • Land

We simplify the process for owners, like you. We can handle commercial spaces, commercial land, industrial real estate, and flex warehouse spaces and are there to support you with the documentation and logistics throughout the process.

How to Donate Commercial Real Estate

  • Takes 3-6 weeks
  • The cost is free

Steps to Take

1. Tell us about your property

2. Our expert team reviews each property to see if it’s a good fit.

3. Sign the closing documents and return them to us.

4. Leave the rest to us as we take over all other property responsibilities, sending you a tax-deductible receipt.

Benefits

  • Avoid The Challenge of Selling
  • With a donation, you avoid much of the bureaucracy and red tape that revolves around things like:
    • Maintenance
    • Changing bills
    • Dealing with fees that you may have incurred
    • Paying required taxes
    • and more
  • Tax Write-off
  • A Large Experienced Team By Your Side

FAQ

Yes. Office space is tax deductible as a commercial property.

Better is a matter of perspective.

Selling a property can be lucrative but involves a lot of red tape and taxes. When you donate your commercial property, in addition to feeling that you are doing something for the greater good, you receive a tax exemption and deduction and relieve yourself of all property responsibilities, fast and easily.

100%.

Depending on your organization, you can receive large, long-lasting deductions and you are immediately exempted from any capital gains tax you would have had to pay as a result of a sale.

Our team of experts review your snapshot form and conduct a thorough appraisal of your property. They will then make a final evaluation of your house and, if approved, will forward you on the required documents to sign over your property and relieve you of all your associated responsibilities.

3-6 weeks from the moment we receive your snapshot form to the when you sign the closing documents.

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 accumulate 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.

Up to 5 years post-donation.

Our property experts will review your property during the approval process, but you are always welcome to use an independent appraiser.

We take full responsibility for any and all fees your property may have incurred once you donate your property.

We accept any type of commercial property, however, our property evaluators have their criteria for an ‘approved’ property and can deny a property from donation.