Donating Land To Charity Tax Deduction

Complete section b of form 8283 to document your land donation for tax purposes.

Donating land to charity tax deduction.

Irs tax deductible property donations to charity a real estate donation whether vacant land industrial residential land contracts commercial property or timeshare provides you with a great way to enjoy what many consider an impressive tax deduction. If the land is worth less than 500 000 an appraiser s signature on the form 8283 is sufficient. Donations to qualified charities are tax deductible expenses that can reduce your taxable income and lower your tax bill. You must itemize your tax deductions to claim them however and this is typically in your best interest only if the total of all your itemized deductions exceeds the amount of the standard deduction you would receive for your filing status.

You can find a more comprehensive discussion of these rules in publication 526 pdf charitable contributions and publication 561 pdf determining the value of donated property. For some charities land is a burden since if they don t have a use for it they may need to pay to own it and to sell it. Gifts of donated property clothing and other noncash items have long been an important source of revenue for many charitable organizations and a popular deduction for taxpayers. The federal tax code allows individuals and businesses to make noncash contributions to qualifying charities and to claim deductions for these contributions on their tax returns.

Not every eligible charity wants land. This article generally explains the rules covering income tax deductions for charitable contributions by individuals.