Donating buildable or re-sellable land to Athens Athens Habitat is a great way to contribute, especially if the property has appreciated but isn’t currently generating income. By avoiding capital gains tax on a market sale, and taking the fair market value in income tax deductions, the property could be more valuable as a donation.
This article by Giving Property gives a brief, one-page overview: Real Estate Donation and Tax Deduction Benefits
“Donating real estate to charity is a noble cause – and alters your finances and legacy for the better. Instead of facing numerous taxes that come with just selling your property, you can tap into multiple tax deduction benefits through a donation. From avoiding the dreaded capital gains tax to increasing your retirement income, you have a lot to gain by donating real estate to a nonprofit.”
This five-minute video from Madrona Financial shows how donations of real property can work in practice:
DAFgiving360, explains how property contributions can be made via donor advised funds: Donating appreciated non-cash assets — Real estate: A tax-smart approach to maximize your philanthropic impact
Habitat for Humanity International outlines three ways of donating property — bargain sales, direct gifts, and charitable remainder trusts: How to Donate Real Estate
And if you really want to dig into the details of tax benefits, you can start with this IRS page: Tax information on donated property
As you can imagine, every donation of real property is unique and has to be handled with care. If you’re interested in making a property contribution to Athens Area Habitat, talk with your financial advisor first, then give us a call. We think you’ll be glad you did!