A Real Estate Donation provides you with a great way to enjoy what many consider an impressive tax deduction. If your real property asset has grown in value, or unfortunately turned into a nonproducing property in your portfolio, it may be the time to consider a real estate donation.

Real estate donations make good sense for both individuals and corporate donors. The equity from your real estate donation helps us continue to benefit the many commendable causes we support. Urb, Inc. is here to provide you with the know-how necessary to conduct a real estate donation that optimizes the benefits for both you, the donor, and those we serve.

Individual donors
These rules may apply if the donated real property is owned in your own name, with your spouse or other persons (Please check with your tax professional): If you have held the property for more than one year, it is classified as long-term capital gain property. You can deduct the full fair market value of the donated property. Your charitable contribution deduction is limited to various percentages of your adjusted gross income. Excess contribution value may be carried forward for up to five years. If the property has been depreciated, the fair market value must be reduced by its accumulated depreciation through the date of contribution.

Fair Market Value is most commonly determined by an independent appraisal.
If you choose to deduct your cost basis of the donated property you are allowed a deduction of fifty percent (50.00%) of your adjusted gross income (Please check with your tax professional).
Excesses here again can be carried forward up to five years. Which method you choose to follow is dependent on the cost basis in the property donated, your tax bracket, the age and health of the donor and whether you plan to make future contributions (Please check with your tax professional).

Corporate Donors
The following rules apply if your charitable donation of real property is made by a corporation: If you have held a controlling interest in the corporation and the property has been held for more than one year, the corporation may deduct up to ten percent (10.00%) of the net profit of the corporation (Please check with your tax professional).Excess contribution amounts can be carried forward up to five years. The fair market value here must be reduced by the amount of accumulate depreciation.

If the corporate has elected “Sub. S” status, then the contribution allowed will be reported on the individual shareholders K1 and may be deducted on the individual return (Please check with your tax professional).

Partnerships, S-Corporations and Limited Liability Companies
The following rules may apply if your contribution is being made by a partnership, S-Corporation or limited liability company: The corporation may not claim a deduction for the property donated. Rather, the contribution passes to the individual shareholders on a pro-rated based on their percent ownership in the S corporation. The shareholder can claim this deduction on their individual tax return. The same limits and carry forward rules will apply (Please check with your tax professional).

Partnerships and limited liability company contribution rules are the same as an S corporation with one exception the partners or member can claim a deduction even if they have no basis in the partnership or limited liability company. (Please check with your tax professional)

 

Please feel free to call us with any questions (847) 673-7575


Do you have a property you would like to Donate to Charity in Chicago?

According to the Internal Revenue Service, the federal tax code allows individuals and businesses to make noncash contributions to qualifying charities and to claim deductions for these contributions on their tax returns. Gifts of donated property, clothing, and other noncash items have long been an important source of revenue for many charitable organizations and a popular deduction for taxpayers.

 

Inquiries are always welcomed.

Simply fill out the form below and one of our representatives will contact you shortly!

If you need immediate assistance, please call us at (847) 673-7575


Types of Real Estate Charities accept for donation

  • Brick or Frame Homes
  • Single Family Homes
  • Town homes & Condominiums
  • 2 Flats, 3 Flats & 4 Flats
  • Residential Apartment Buildings
  • Foreclosures for Sale
  • Bank Foreclosed Homes
  • Commercial Buildings
  • Apartment Buildings
  • Hotels and Motels
  • Rooming Houses
  • Mixed Use Properties
  • Strip Malls / Churches
  • Vacant land / Empty lots
  • Shopping Centers / Church properties
  • Duplexes / Duplex dwellings

3 Steps to Follow

Step 1 – Educate Yourself

A real estate donation is not like a car donation or boat donation which most of our donors are familiar with. When you donate real estate, a 5 year current market value tax deduction or the ability to receive income for life puts real estate donations in a league of their own. We have taken quite a bit of time putting together as much information as possible to answer any questions you might have. We suggest you set aside some time and learn about who we are and how we make sure a real estate donation benefits everyone involved. Please also consult with your accountant or lawyer!

Step 2 – Complete a Simple Online Real Estate Donation Form

After you have become familiar with the amazing things we do and the financial benefits you will receive, we invite you to complete our donation form. This is a very simple process and takes less than 3 minutes on average. Just choose the category your real estate donation falls into and submit your information. This gives us a chance to familiarize ourselves with your property and we will reply within 48 hours.

Step 3 – Complete the Deeds, Record, Process & Transfer Ownership

Now that you have chosen to move ahead with your generous donation, Urb, Inc. will send you a donation package, which consists of but is not limited to the following documents needed to transfer ownership.

  • Quit claim deed
  • Warranty claim deed
  • Donation agreement
  • Deed and gift Declaration

Upon completion of the full inspection, Urb, Inc. will then proceed with the steps necessary to take legal and proper deed to the charitable donation of real property offered. At this juncture, all properties are immediately insured for fire and liability to protect the interests of Urb, Inc. and their agents/affiliates.

From there, we can assist you in finalizing the transaction in a timely and efficient manner. We and Urb, Inc. work hard to make the charitable donation process simple, trouble free and as simple as possible for both our generous corporate and individual donors alike.