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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
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Experience:  10 years experience
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I entered into a lifetime lease that I paid in full ($125,000)

Customer Question

I entered into a lifetime lease that I paid in full ($125,000) with a YMCA camp. The lease gives me full occupancy rights to a lake cottage they own for the rest of my life. I am 61 and no longer live close enough to use it. Can I get a market appraisal for what the annual income would be for the Y, then donate the balance back to them as a gift and take a tax deduction? A very conservative 15 years would be my life expectancy x annual market rate rental value (using actual local comps of actual rentals revenues).
Submitted: 7 months ago.
Category: Tax
Expert:  emc011075 replied 7 months ago.
Hi. My name is ***** ***** I will be happy to help you. No, you cannot deduct projections or future expectations or lease. You may be able to work out some type of arrangement with YMCA to gift them the rights on yearly basis and receive and get YMCA confirmation letter about the transaction. If the gift will be more than 5K, you will need YMCA approval (signature of their representative on your tax form).
Expert:  emc011075 replied 7 months ago.
I see you read my respond. Do you have any questions? Is there anything else I can help you with today?

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