Property Acquisition
Looking for a way to donate land to charity? We accept commercial, industrial, residential and mixed-use land donations and offer a tax deduction to all qualified donors.
The property acquisition program will be employed to provide housing for the young adult and single parent individuals home mortgage and finance program, property flips, 3Genx’s Home Retirement and Catered Living program.Compatible placement and Subsidized Housing programs.
There are very good reasons to donate apartment, condo, and housing units;
• The desire to help others meet housing needs (get families off the streets!)
• The desire to secure tax advantages while giving to others—donate an apartment, condo, or housing complex and enjoy years of tax benefits!
• The desire to give back to the community that has supported them
Real estate donations make good sense for both individuals and corporate donors. The equity from your real estate donation helps support 3Genx’s many programs and program services.
Individual donors
If you’ve owned the property for more than one year, it is classified as long-term capital gain property. You can deduct the full fair market value of the donated property. Your charitable contribution deduction is limited to various percentages of your adjusted gross income. Excess contribution value may be carried forward for up to five years. If the property has been depreciated, the fair market value must be reduced by its accumulated depreciation through the date of contribution.
Fair Market Value is most commonly determined by an independent appraisal. If you choose to deduct your cost basis of the donated property you are allowed a deduction of fifty percent (50.00%) of your adjusted gross income (Please check with your tax professional). Excesses here again can be carried forward up to five years. Which method you choose to follow is dependent on the cost basis in the property donated, your tax bracket, the age and health of the donor and whether you plan to make future contributions (Please check with your tax professional).
Corporate Donors
The following rules apply if your charitable donation of real property is made by a corporation: If you have held a controlling interest in the corporation and the property has been held for more than one year, the corporation may deduct up to ten percent (10.00%) of the net profit of the corporation (Please check with your tax professional). Excess contribution amounts can be carried forward up to five years. The fair market value here must be reduced by the amount of accumulate depreciation.
If the corporate has elected "Sub. S" status, then the contribution allowed will be reported on the individual shareholders K1 and may be deducted on the individual return (Please check with your tax professional).
Partnerships, S-Corporations and Limited Liability Companies
The following rules may apply if your contribution is being made by a partnership,
S-Corporation or limited liability company: The corporation may not claim a deduction for the property donated. Rather, the contribution passes to the individual shareholders on a pro-rated based on their percent ownership in the S corporation. The shareholder can claim this deduction on their individual tax return. The same limits and carry forward rules will apply (Please check with your tax professional).
Partnerships and limited liability company contribution rules are the same as an S corporation with one exception the partners or member can claim a deduction even if they have no basis in the partnership or limited liability company.
(Please check with your tax professional)
IRS 8282 Form: Donor Information Return
IRS 8283 Form: Non cash Charitable Contributions
Apartment or Condo Donation
Nearly any type of apartment, condo, or housing unit can be donated to charity. As the owner of any of these types of properties, you have the option to:
• Donate single apartments
• Donate duplexes or triplexes
• Donate apartment complex
• Donate condo/single townhouse units
• Donate rental homes
• Donate corporate housing
It is also worth noting that with 3Genx you can donate apartment, condo, and housing complexes even if the property is still mortgaged. 3Genx is one of the few charities that accepts mortgaged apartments and condos for donation.
Charitable Gift Annuity
Real Estate with Causes Charitable gift annuity program is setup to help you, the donor, increase your current income from rental property while enjoying significant tax deductions.
Payout rates ranging from 4.9% - 11.5%
Substantial income tax deduction and capital gains tax deduction
A Charitable Gift Annuity is a donation that falls in the category of Planned Giving. It involves a contract between a donor and Real Estate with Causes, whereby the donor transfers property to Real Estate with Causes in exchange for a partial tax deduction and an income stream, expressed as a percentage of the original principal amount, to not more than two people for life
Life Estate
There are also ways of donating a home but still being able to enjoy it during one's lifetime. Property owners can create a life estate, which allows them to live in the house, with the understanding that the property title will be transferred to a given charity upon death. Owners still receive the charitable tax deduction while they are living, and depending on the property and its income potential, they may even be able to get lifetime annuity. At the same time, they avoid passing on the tax burden to family members after death.
A life estate is an interest for life in property. It is very common to sell or give property away while retaining a life estate: the seller or donor retains use of the property so long as he or she lives; Real Estate with Causes takes possession of the property only upon death.