Donating Land To Charity Tax Deduction

Donate land and save on taxes.

Donating land to charity tax deduction.

Complete section b of form 8283 to document your land donation for tax purposes. 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. Not every eligible charity wants land. 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.

Donations to qualified charities are tax deductible expenses that can reduce your taxable income and lower your tax bill. 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. This article generally explains the rules covering income tax deductions for charitable contributions by individuals. If the land is worth less than 500 000 an appraiser s signature on the form 8283 is sufficient.

But if it s worth over half a million the full appraisal must be submitted. 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.