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Urb, Inc.
 
 
 

 

A real estate donation through Urb, Inc. "Flag Raising" effort to aid Illinois Veterans can help you rid yourself of nonproducing properties and also avoid capital gains tax on highly appreciated property.

A real estate donation significantly reduces your legal and tax liabilities on the properties you donate and more efficiently attain personal financial goals while also supporting the efforts to aid United States Veterans go from homelessness to home ownership..

One of the advantages to the donor is that the size of the tax deduction is determined by the current market value of the property, as opposed to the cost of the property when it was purchased. So if you purchased your property for $112,000 and today it is worth $412,000, the current value is what you base your tax deduction on. (Also, by donating a property instead of selling it outright, real property donors can avoid paying brokers' fees.) 

In many cases, if one takes into consideration ongoing property taxes, maintenance costs, income taxes--or if the property is sold, the cost of legal fees, brokerage fees, estate taxes, inheritance taxes and capital gains taxes--it is often financially preferable to donate properties. It also saves heirs the trouble of trying to divvy up the gains if the will is potentially contentious or inequitable.