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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7195
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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This a tax question. I bought a house in foreclosure and

Customer Question

This a tax question. I bought a house in foreclosure and renovated it over the past 7 months. If I give the house to someone (quick claim deed) how can realize any tax benefits? Can it be a donation of sorts? I bought it for $24K and put about $20K in it. It would appraise at about 60-65K. I have some rental properties and such and not sure if I can write off any of the improvements, etc. Thanks!
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
Prefer a person knowledgeable on taxes. BTW, I live in Ohio.
Expert:  Stephen G. replied 1 year ago.

Your Question:

If I give the house to someone, how can realize any tax benefits?

The only benefit that you could realize would be if you were to give the property to a not-for-profit organization, such as a public charity, church, school or a conservation commission for example. There would be no benefit if you gave the property to an individual. Of course if you were to turn the property into rental property, you are already familiar with the tax benefits of sheltering some of the rent via depreciation deductions, etc. Of course, given the figures you cited, that benefit would be minimal as your tax basis would only be the 44K you have invested in the property and then you would have to make an allocation between land & building and the building would have to be depreciated on a straight-line basis over 27 1/2 years (presuming it is residential rental property).

Expert:  Stephen G. replied 1 year ago.

Just checking back in to see if you have had a chance to review my response & if you have any follow-up questions, please don't hesitate to ask.

Steve G.