Discussion:Property Donation
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Discussion Forum Index --> Basic Tax Questions --> Property Donation
Discussion Forum Index --> Tax Questions --> Property Donation
| 27 November 2007 | |
| Taxpayers has a basis of $800,000 in his principal residence. He has had it appraised for $1,500,000. He is selling it to the local Fire Department for 1,100,000. He would like to take a donation for a portion of the difference between the appraised value of $1,500,000 and the selling price of $1,100,000. They qualify for the $500,000 exclusion on the sale of their home. What is the best way to handle and receive a deduction for the donation? My suggestion would be not to exceed $1,300,000 so they do not exceed the $500,000 gain on the sale of their home and receive a charitable donation of $200,000.
Would they just enter it as a bargain sale on Form 8283; Section B; As a bargain sale? And obviously they would have to get the Declaration of an Appraiser. | |
Johnhuddleston (talk|edits) said: | 27 November 2007 |
| I would think they would be entitled to a $400,000 donation since the donation of a long term capital asset doesn't create a taxable gain. I understand there is a sale here but the capital gain should be the proceeds (i.e. $1,100,000) minus the basis.
John Huddleston Seattle Bellevue Tax Accountant | |
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