Can I donate a house to a non-profit in need of repair?
If you own a house in Chicago that has been vacant for years and will need some upgrades and cosmetic repairs and thinking about selling and donating the money to a charity but are not sure if it’s better to donate a house directly to a non-profit organization.
You can donate your house directly to a non-profit, and Urban Renewal Project has made it easy to donate to a qualified non-profit at no cost to you or the non-profit organization, so you can receive a tax deduction.
We advise that you contact a tax professional to discuss the options, potential tax deduction benefits, and most of all if donating your house is right for you.
Donating Your House To a Quilified Non Profit Charity!
Many non-profit organizations will accept a house as a donation, however, if the non-profit cannot afford to maintain the house, pay utilities and property taxes, use the house, or invest time in selling or rehabbing a house then they might not. So, before you make your decision, contact the non-profit and ask, “Can I donate a house to your non-profit?”
Donating a house to charity can be a better option than selling a house and donating the proceeds. The reason is because of the financial benefits you receive by donating a house.
When you donate a house to nonprofits in Chicago you may be able to use the cost basis of your house (original purchase value) as a charitable deduction for up to 60% of your adjusted gross income. Another option is to use the current value of your home as a charitable deduction at 30% of your adjusted gross income. Additionally, you and the receiving charity can avoid capital gains taxes for the appreciated value of your house. Lastly, by donating your house to a charity you can reduce estate taxes since the house will be transferred to a non-familial entity.
We would be pleased to answer any questions.
(312) 957-4951