Donating Commercial Real Estate to Charity
Donating real estate to 501c3 nonprofits is a popular way to provide assets to Chicago charities. Also, donations can provide tax advantages. But, donating property isn’t just about houses. That property can be resold by the charity. and provides flexibility. Charities have the option to manage, maintain, or sell your donated property. Here are some benefits of donating real estate to a charity.
What is commercial property?
Commercial property is real estate used for business activities. Commercial real estate in Chicago refers to buildings and single-family homes housing businesses. But, commercial property also refers to land used to generate profit. And includes multi-family Chicago rental properties.
Donating real estate to a nonprofit has its limitations on how a501c3 can utilize commercial real estate. Though, donating commercial real estate in Chicago can also boost a nonprofit. Benefits of donating commercial real estate to a charity
Donating commercial real estate to a charity 501c3 nonprofit is a great way to find tax incentives. We suggest that you speak with your tax advisor before donating property. This should be done before, during, and after the donation. This ensures you properly document the transaction. Below are tax breaks you can receive from a property donation
- Lower real estate taxes.
- Avoid capital gains taxes.
- Improved large tax deductions.
Other non-tax benefits of donating your rental property include: reducing Chicago rental challenges, And, reducing your real estate and landscape costs.
Donating Chicago property to a charity also comes with altruistic opportunities such as:
- Giving back to Chicago’s southside and westside neighborhoods.
- Aid 501c3 nonprofits improve Chicago housing needs.
How to donate property to a charity
Donating commercial real estate can help a 501c3 improve office locations. It can increase storage and fulfillment services. Can provide rental real estate to maintain the nonprofit. And a charity can sell the property to recoup a costly donation. But, donating your property to a nonprofit isn’t always simple.
When donating property, you need to contact the charity first. This is to ensure the nonprofit will accept your donation and can afford to maintain your donation.
Second, you should include a financial advisor. A financial advisor will help you document your donation. They can also explain tax incentives that justify your nonprofit donation.
Third, some charities will accept property with additional costs. Though, it is best to pay back taxes, unpaid utilities, and an unpaid mortgage. So, by paying these expenses, 501c3 nonprofits may accept your property donation.