Donate Property / Commercial Real Estate / Land in Connecticut
Donate Connecticut Real Estate
The process of donating Connecticut real estate is very simple and an easy way to get rid of a burdensome property that no longer is cable of its highest and best use and help others in need at the same time. When you Donate your property; IBHIC works with a number of professionals who handle the entire process from start to finish. There is no cost to you, unlike if you were to sell the property with a real estate brokerage or continue to hold the unwanted property and pay utilities and property tax. We look forward to helping you and others through your Connecticut real estate donation.
Selling Unwanted Property, A Better Alternative
In many cases, selling unproductive property is not the best course of action for many reasons. Due to the costs involved that might outweigh the actual property's worth at fair market value. For this reason, many people hold on to unwanted and non-capital producing real estate for lack of a better alternative, they continue paying taxes, maintenance and upkeep costs, state and city fines, have accepted liens and judgment’s against them without ever seeing any return on their investment. IBHIC offers you the solution to this problem.
Benefits of donating
You also benefit when you donate Connecticut real estate by securing a generous tax deduction; the tax deduction that you earn through Connecticut real property donation is given relative to the FMV or fair market value (not the value of the property at the time acquired) In many cases, the tax deduction (which can be taken over five tax years) is a much greater financial advantage than attempting to sell the subject property and pay the associated fees that go along with a traditional sale.
IRS Tax Deductible Property Donations
How A Real Estate Tax Deduction can help You?
These rules may apply if the donated real property is owned in your own name, with your spouse or other persons If you or any of the above mentioned held the property for more than one year, the said property is classified as a long-term capital gain. If this the case you will be able to deduct the full fair market value of the property. Your charitable contribution deduction is limited to various percentages of your adjusted gross income. Excess contribution value may be carried forward for five years. If the property has not been upkept and has depreciated in value, the fair market value must be reduced by its accumulated depreciation through the tax year 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%) or one half of your adjusted gross income (Check with your tax professional). Which method you choose is dependent on the cost basis of the property donated, your tax bracket, the age and health of the donor and whether you plan to make future contributions.
Remember that donations to individuals will not qualify for a tax deduction. You cannot deduct contributions to specific individuals no matter how deserving.
If you are interested in donating real property please feel free to contact us today.