Commercial property owners considering a charitable donation can find the process daunting.
Managing the wants and requirements of a board of directors, investors, or key employees can prove to be a complicated experience, and getting rid of the property can be challenging.
We simplify the process for owners, like you.
By donating your commercial real estate you take advantage of several tax break options.
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.
As a non-profit organization taking charge of your property in as little as three weeks, we help you maximize your tax benefit while staying tax compliant.
Follow along to understand everything you need to know about donating your commercial property.
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:
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.
We do everything to make it a smooth sailing process for you.
Read on to understand how to get started in the best and safest way.
When you choose to donate your property, you:
Selling commercial properties that need repair or real estate in a bad location can make it extremely difficult and every month that goes by, the bills keep piling up.
By working with a non-profit organization that has been doing this for many years, you could rest assured that after a thorough review, we will give you a quick and meaningful answer for any type of property.
We list the types of properties we accept below.
We always advise to fill out the form, ask us questions and then discuss it with your financial advisor.
Donating commercial real estate is made easy from our end but it’s always good to understand the deductions that are available, as they are based on your corporate structure.
As with every donation, the whole process takes between 3-6 weeks from start to finish.
If your commercial property is approved for donation, and we accept it, then we will prepare all necessary documents so all you’ll need to do is sign on the dotted line.
We guarantee that no matter the type of commercial real estate or ownership type, you will receive the highest tax deduction while following tax guidelines.
Commercial property includes a wide range of property types.
These are physical spaces designated for commercial use.
Primarily falling under two categories:
Below are some examples of commercial spaces you can donate.
Manufacturing and distribution centers, cold storage facilities, service parks, flex facilities/warehouses, and R&D centers.
Office and residential storefronts, grocery stores, daycares, banks, and freestanding establishments can all be donated as part of a commercial property donation.
Large commercial retail facilities such as shopping malls, outlet malls, community and neighborhood centers, and airport retail space.
Specialty spaces can be particularly tricky when trying to sell.
Religious establishments such as churches or synagogues, schools, self-storage facilities, car washes, and others are very particular property types that do not always have ‘ready to go” customers.
You may be upgrading or outgrowing your current space, and you are looking for a new data hosting site, creative space, work unit, or residential-style office.
Either way, office space is a worthwhile donation to make as it provides a tax deduction and eliminates your capital gains tax.
As a niche market, healthcare spaces such as doctor offices, medical clinics/hospitals, elderly care facilities, and rehabilitation centers are all difficult sells, dilapidated or abandoned ones no less.
They can remain on the market for years as your financial burden to these places continue.
When you donate, you immediately remove any financial and legal obligations associated with the property and you can move on with your business endeavors.
Hotels, motels, and casinos require a large amount of upkeep.
By donating your property and getting rid of unwanted costs, you save your business the necessary money to grow and progress.
Theaters, arenas, sports fields, pools, amusement parks, and athletic ranges are all types of commercial real estate we accept.
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.
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 reviews your snapshot form and conducts a thorough appraisal of your property.
They will then make a final evaluation of your house and, if approved, will forward you 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.
Our experts will review your property and if it’s something that makes sense for both of us, we will accept the donation.