Tax deductions for real estate donations

Please be advised You will need to consult an accountant or financial advisor before donating real estate.

In order to receive a tax deduction, your donation must be made to a 501(c)(3) non-profit organization.

Eligible non-profit organizations

Religious
Scientific
Educational
Testing public safety
Sports (limited to certain criteria)
Social work (child, women or animal abuse)
Community funds
An organization that’s made to cooperate or associate exclusively to support the above

Not all charities provide a tax-deductible receipt.

For a real estate donation to be eligible for a tax deduction, it must be made solely for charitable or public purposes by an individual who will itemize their deduction.

A database of tax-exempt organizations has been set up by the IRS here to help you with your research. Pub 78 data includes all organizations eligible to receive tax-deductible charitable contributions.

IRS rules for donating real estate

Receipt from the charity
Appraisal, if the value is more than $5,000
If the property is sold within 3 years, you’ll get – IRS form 8282
Form 8283 – “Individuals, partnerships, and corporations file Form 8283 to report information about noncash charitable contributions when the amount of their deduction for all noncash gifts is more than $500.” – About Form 8283, Noncash Charitable Contributions
- Form 8283 PDF
- PDF instructions for Form 8283
IRS Publication 561 – Understanding FMK (Fair Market Value) and evaluating your property.
Tax information on donated property

Information the IRS requires when filing your tax return (for real estate donations)

Name
Address
I.D. number of the taxpayer
Info about the qualified appraiser
A statement that the appraisal was for tax write off purposes
And more…

Calculating your tax deduction

If the property is more than $5,000 then you need a qualified appraisal.

It’s important to know whether you are donating:

the use of the property
the whole property
half of the property
will the property still reap the reward for you (after donating)?
Is it a short-term asset or a long-term asset?
and more…

Real estate donation calculator

IRS checklist for donating real estate

Is the organization eligible to accept donations?
Determine the value of the property.
Document checklist:
- Receipt from charity
- Section A of Form 8283 was completed and signed by the client.
- If the donated real estate is worth more than $5,000 then you need:
  - Section B of the Form 8283
  - An appraisal of the property value is attached.

Recent donations

Choose a category below to see real estate donated to us: