Charity Auction Network using our partner 501c3 nonprofit corporation accepts donations of all property types at no cost to the owner/donor and provides the resale proceeds to the charity of the donors choice and represents many charities like Make A Wish Los Angeles and Disabled American Veterans to process donations for their donors.
Raw or entitled land is the most common property type for straight donations because unused lots often have no income potential and instead just rack up property taxes. Assuming the property has equity, you can donate land to with a very quick closing. In January 2021, we closed a 2 acre land donation in Palmdale, CA for a Make A Wish donor in 14 days paying all closing costs.
Another common property type for donation is the vacation home that is no long utilized. It does not matter if the property is in poor condition or has back taxes or loans. If there is equity we will accept the property. We are launching a timeshare division shortly but not currently accepted.
More common with estate donations upon a death of a family member as few home owners are in a position to donate a primary residence.
We often facilitate IRS Section 170 Bargain Sales for luxury homes which provide both cash and tax deductions for homes typically over $4M and possessing unique or custom construction features. This is a great program for owners who don’t believe the market is valuing all the features of the property and can use a large tax deduction via a sale to our nonprofit partner at a slight discount to current market. These are complicated transactions are best discussed with us over the phone. In summary, luxury owners can often achieve full list price in the form of cash and tax deductions.
Except for smaller assets, most CRE owners have avoided donation as an exit strategy because they had loans, partners, or were not in a position to donate all the equity. Using the IRS Section 170 Bargain Sale, we open the door to partial equity donations which often net the seller more money than the current market will bear since our nonprofit sales produce cash and tax deductions to the seller/donor. The IRS Section 170 was passed into law in 1917 and predates the 1031 Exchange.
We have completed donation sales of very large assets and even property with environmental issues (provided their is still significant positive equity). Our property page illustrates some of the larger Section 170 sales marketed by Zetabid in the last 2 years.
We have donor advised funds that can provide a lifetime annuity (income) when donating larger income property as well.
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