Capital Gains and Losses
Capital Gains Tax Questions? Ask a Tax Advisor for Answers ASAP
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Several issues here. If you rented the property for 22 years your basis (investment minus depreciation) is very low which means most of your "capital gains" are actually depreciation recapture, not capital gains.
Now, for tax purposes a donation is a gift given to a qualified organization. To be a qualified donation you will have to give up all rights to the property without receiving anything in return. You cannot "donate" the house but not the property and than sell the property. And even if this would somehow worked out, reinvesting the proceeds into a new personal property will not protect you from the depreciation recapture or capital gains. You would have to re-invest the proceeds into a new business/rental property to deffer, but not eliminate, capital gains.
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