Our team at Probity Appraisal Group and The Green Mission Inc assist our clients with estate property donations nationwide. Along with our mission to divert construction waste from the landfill, we also help clients donate valuable property to charities to further their missions.
We often meet clients with a home or storage unit full of valuable property like fine and decorative art, musical instruments, antiques, furniture, and collectibles. These clients want to do something meaningful with the property. This is where our team comes in to help.
Donating property to a charity can be a generous way to support a cause you believe in while potentially receiving tax benefits. The specific process and tax implications of donating property can vary based on your location and the charity involved. It is important to consult with a qualified tax professional or legal advisor to ensure you understand the specific requirements and consequences in your situation. However, here is a general overview of the steps involved:
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1.INSPECTION AND INVENTORY: Our team travels onsite to perform an inspection of inventory, cataloging everything and providing a preliminary quoted value of what the property is worth. Our clients can then choose what property they would like to keep and what they would like to donate.
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CHOOSE A CHARITY: Select a qualified charitable organization that aligns with your values and goals. Ensure that the charity is eligible to receive property donations and that your donation will be used in a manner consistent with your intentions.
Our clients have often choosen charities that sell the property and use the proceeds to support initiatives such as animal shelters, drug recovery programs, work training for vulnerable populations, helping the un-housed, education initiatives and many more.
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3.RESEARCH TAX IMPLICATIONS: Consult with a tax professional or legal advisor to understand the potential tax benefits and limitations associated with donating property in your jurisdiction. Tax laws and regulations can vary, and it is crucial to have accurate information before proceeding.
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4.IRS QUALIFIED APPRAISAL: Obtain a professional IRS Qualified Appraisal of the property you intend to donate. The appraisal will determine the IRS defined Fair Market Value of the property at the time of the donation. This valuation is essential for tax purposes and substantiating your charitable deduction.
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5.DONATION DOCUMENTATION: Work with the charity to ensure all necessary documentation is in place. Typically, this includes a written agreement outlining the terms of the donation, such as how the property will be used and any restrictions you may impose.
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6.TRANSFER OF OWNERSHIP: Arrange for the transfer of ownership to the charity. This may involve executing a deed, title transfer, or other legal procedures depending on the type of property being donated.
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7.TAX REPORTING: Consult with your tax professional to understand the reporting requirements for your donation. Depending on the jurisdiction, you may need to complete specific tax forms and provide documentation of the donation, such as the appraisal report and acknowledgment from the charity.
Remember that donating property can have significant financial and legal implications. It's crucial to seek professional advice and ensure you fully understand the process, including any potential tax deductions or restrictions that may apply in your situation.
Contact our offices to learn more about the inspection, inventory, and donation processes and to learn more about the impactful charities with whom we work.
