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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7119
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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I have land near Ashville NC I would like to donate to a

Customer Question

I have land near Ashville NC I would like to donate to a charity. I bought it $70,000 and it has been assessed for tax value at 68,500. I have been paying taxes at that value for 10 years. I have tried to sell the land and recently had it on the MLS at $5K and it didn't sell. My question is: If I donate it to a charity with tax exempt status, what value will I be able to deduct? The $68,500 I have been paying taxes on, or the negligible market value it presently has?
Submitted: 1 year ago.
Category: Tax
Expert:  Stephen G. replied 1 year ago.

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.

Customer: replied 1 year ago.
Once the qualified appraiser sets the value, can I feel confident that that is the amount I can deduct on my taxes?
Expert:  Stephen G. replied 1 year ago.

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.

Expert:  Stephen G. replied 1 year ago.

Do you have any other questions or may I further clarify anything for you?

Expert:  Stephen G. replied 1 year ago.

If you don't have any follow-up questions, I would appreciate it if you would take a minute to rate my response as that is the only way we receive credit for our work.