The operating or partnership agreement
It shows who can sign and whether members must consent.
Donating property held in an LLC, partnership or corporation
Entity-owned property specialists: (888) 228-7320
Donating Real Estate Held in an LLC
Much investment real estate is held in an LLC, a partnership or a corporation rather than in an owner’s own name. The entity can donate the property to Real Estate with Causes, or the owners can donate their interests in the entity. Which route works better depends on how the entity is taxed and what else it holds, so your advisor should be part of the conversation from the start.
Tell us about the property
Every property gets a look. Name, phone and email are the only required fields.
Fully IRS Compliant
We Handle the Paperwork
Form 8283 Done Right
501(c)(3) Recognized Charity
The entity donates the property
The simplest route is for the entity that holds title to deed the property to us, signed by whoever has authority under the operating or partnership agreement. The charitable deduction then follows the entity’s tax treatment.
LLCs taxed as partnerships
The deduction passes through to the members in proportion to their shares, and each applies their own limits.
Single-member LLCs
A disregarded LLC is treated as if the owner held the property directly.
C corporations
A corporation takes the deduction itself, subject to the corporate limit on charitable gifts.
Donating the interests instead
Owners can sometimes donate their membership or partnership interests rather than the property. That is more complex: the entity may have debts, other assets or liabilities, and the interest itself has to be appraised.
We review both routes with your advisor and tell you which we can accept for your situation.
What to have ready when you call
Your CPA or attorney will have these.
How the entity is taxed
Partnership, disregarded entity, S corporation or C corporation.
What else the entity holds
Other property, debts or liabilities.
LLC property donation questions, answered
Who signs the deed when an LLC owns the property? +
The manager or member with authority under the operating agreement. Some agreements require a vote of all members.
Who gets the tax deduction? +
It depends on how the LLC is taxed. A partnership passes it through to members, a single-member LLC to its owner, and a C corporation takes it directly.
Can I donate my share of the LLC instead of the property? +
Sometimes. Donating an interest is more complex because the entity’s debts and liabilities come with it. We review it case by case.
The LLC has a loan on the property. Does that stop it? +
Not automatically. A loan makes the gift a bargain sale, and the equity and lender terms decide whether it works.
Does the LLC need to be dissolved after the donation? +
Only if it has nothing else to hold. That is a question for your attorney.
We do not provide tax or legal advice. See IRS Publication 526, Publication 561 and the Form 8283 instructions, and consult your own advisor.
Related guides
Tell us about the entity and we will review it
Send the property address and how the entity is set up, and we will work with your advisor on the right route.