How is my real estate donation tax deduction calculated?

The IRS allows you to deduct the full, current fair market value of your real estate rather than just what you originally paid for it. We provide appraisal support to ensure the IRS recognizes the true value of your gift, substantially lowering your income tax.

What if my property value is larger than the deduction I can take in a single year?

The IRS understands this and allows you to carry forward your unused tax deduction for up to five additional years. This means a single property donation could provide you with tax relief across multiple years.

Do I have to pay closing costs to donate my property?

No. You shouldn't have to pay to give a charitable gift. We cover the standard transfer fees, deed recording, and closing costs entirely, ensuring you have zero out-of-pocket expenses.

Are Real Estate Donations Tax Deductible?

Yes, a real estate donation to a qualified 501(c)(3) charity such as Giving Center, which runs Real Estate with Causes, can be tax deductible, but only when certain conditions are met. You have to itemize, the gift has to be of your entire interest in the property or a qualifying partial interest, and it has to be documented with a qualified appraisal and Form 8283. Here is who qualifies, what reduces the deduction and what does not count.

What has to be true for a deduction

The charity must be a qualified organization. You must itemize deductions. You must give your whole interest in the property, or an undivided fraction of it, or a qualifying remainder interest in a personal residence or farm. And for gifts over $5,000, you need a qualified appraisal, Form 8283 Section B and our written acknowledgment.

What does not qualify

Keeping the right to use the property, donating only the use of it, or giving land while keeping the house generally does not produce a deduction.

What reduces the deduction

A holding period of a year or less, dealer inventory, depreciation, a mortgage and the AGI limits can all reduce what you actually deduct in a given year. None of them make a donation impossible; they change the amount.

Anything above the annual limit carries forward for five years. Your advisor can model how much you would use each year.

Documents that make it deductible

Keep all three with your return.

Qualified appraisal

From an appraiser you choose and pay.

Form 8283

Section B for gifts over $5,000, signed by the appraiser and by us.

Written acknowledgment

From us, describing the property and confirming no goods or services were provided in return.

Deductibility questions, answered

Is Real Estate with Causes a qualified charity? +

Real Estate with Causes is the real property donation program of Giving Center, an IRS-approved 501(c)(3) public charity. Gifts to it are to a qualified organization.

Do I need to itemize to deduct a property donation? +

Yes. The charitable deduction for property is an itemized deduction.

Can I deduct the appraisal fee? +

Not as part of the charitable deduction. Under current law it is generally not deductible for individuals either. Your advisor can confirm.

Can I deduct a donation of the right to use my vacation home for a week? +

No. Donating the use of property is not a deductible gift.

Is a property donation deductible for state taxes? +

It depends on your state. Some follow the federal deduction, some limit it and some have no income tax.

We do not provide tax or legal advice. See IRS Publication 526, Publication 561 and the Form 8283 instructions, and consult your own advisor.