Have a Tax Question? Ask a Tax Expert
Unfortunately, the deduction would be limited to the fair market value at the time you donate the property. After all, that is the value that the not-for-profit organization is receiving.
When you are dealing with real property, the best procedure is to obtain an appraisal. Most real estate donations require this (fair market value > $5,000.); the appraisal must be completed by a qualified appraiser who is familiar with the area, comparable sales, etc. and performs the appraisal in accordance with professional guidelines.
Yes. That is what is required. There are other deduction limits depending upon what organization you give the land to & what the organization does with the land. Generally the limits are a percentage of your Adjusted Gross Income (AGI) for the year you make the donation, but are amounts based upon 30% or 50% of your AGI, it is doubtful that you will have any limitation issues. Also, any amount not deductible in the current year may be carried over for 5 years or until used whichever comes first.
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