The sale of the rental properties and the donation of the proceeds to charity are 2 separate and unrelated transactions. They can take the loss on the properties under the passive loss rules of section 469. As far as the donation of the proceeds - that donation is limited to 50% of their adjusted gross income and any unused contribution deduction is allowed to carry forward to future years.
Thanks for your reply. To clarify, is it possible to say what the seller receives as an approximate tax deduction % under Section 469 for the sale of this depreciated rental property without knowing their income tax bracket? In regards XXXXX XXXXX donation of the proceeds of this sale, is limited to 50% of AGI regardless of the source - it could be from the sale of this depreciated real estate, sale of appreciated stock, etc? Or does the deduction vary based on the source of this funding of the donation to our charity?
Yes, it is correct to say that the seller receives a tax deduction of ?% under 469 for the sale of the rental property.
The donation of the proceeds is subject to the rule of 50% of their AGI. This rule applies regardless of the source of fund for the donation.
So the tax deduction the couple receives for the sale of the depreciated rental property under 469 isn't known as a result of not knowing their income tax bracket is what you are saying? If so, I'm good to go....