PROPERTY DONATION
Donations of real estate, securities/publicly traded stocks and other tangible assets are ways you can support LSH and help your tax situation.
Perhaps you have outgrown a family home, inherited a house that you don’t need or invested in a development that is not selling fast enough. Or maybe you’re ready to sell, but don’t want to pay significant capital gains tax. LSH accepts these donations from individuals and corporations. You will receive a tax-deductible receipt for the full appraised value of the donated property, while simultaneously removing a large taxable asset from your estate. You can enjoy freedom from property maintenance and the hassle of selling a house, and help restore the gifts of sight and hearing.
Tell us about your property.
Call us at 1-800-647-6638. Our quick form captures all the details we’ll need to start the donation process, including property address and owner, type of property and square footage.
We do a standard property review.
We’ll run a standard review on the property, including title search, tax and lien search and environmental violations search to determine if the charity can accept your property.
We’ll do the paperwork and send the closing documents for you to sign.
We’ll send the closing documents to you for signing. We will take care of the deed transfer and recording, notifying all necessary state and municipality authorities to complete the transfer. We will take over all taxes, maintenance and insurance responsibilities, and send you a tax-deductible receipt.
Learn more about real estate donation and its benefits.
No Cost. Simple Process. Maximum Tax Deduction.
Typically, the process takes 3-6 weeks. We’ll take care of the paperwork and mail the closing documentss for you to sign.
No Cost Donation
We pay all closing and recording fees, plus you’ll save on future property tax and maintenance fees.
Maximum tax benefits
You’ll get a tax deduction for the appraised value of your donation.
If you are planning to make a relatively substantial contribution to LSH, you may want to consider donating appreciated publicly traded stock, which you have held for longer than 12 months. If you donate these types of stocks to LSH, you will not have to include the gain in your income – which you would have to do if you had sold the stock. Your tax benefits from the donation can be increased and LSH will be happy to receive the stock.
This kind of donation is recognized as a savvy financial planning tool, following the general rule that the deduction for a donation of property to charity is equal to the fair market value of the donated property. Where the donated property is “gain” property, the donor does not have to recognize the gain on the donated property. This allows for the “doubling up,” so to speak, of tax benefits: a charitable deduction, plus avoiding tax on the appreciation in value of the donated property
Such is the case with a donation of appreciated publicly traded stock, which you have held for longer than 12 months.
For example, if you donate these types of stocks to a qualified charitable organization, you will not have to include the gain in your income – which you would have to do if you had sold the stock.
The best part of this scenario is that you get the fair market value of the stock (typically the average of the high and low of the trading stock price) the day it transfers out of your account. Wait, what? Yes, it’s true! If you transfer the stock, rather than selling it, you don’t recognize the gain and you receive the charitable deduction on the fair market value on the date of the transfer. That’s a major win!
For example, let’s say you purchased stock in XYZ Company 20 years ago for $100 and now it’s worth $1,000,000. You donate the stock to your favorite local qualified charity. In this instance, you wouldn’t recognize income on the $999,900 gain and you’d get the charitable tax deduction of $1,000,000.
The actual tax effect will depend on each taxpayer’s specific tax situation, so it’s extremely important to consult with your tax professional before making a contribution. This will allow you completely understand the benefits you’ll receive.
Do you have a house full of artwork or antiques? A classic car that’s been sitting in the garage for a decade? There’s a philanthropic way to donate these assets to LSH that won’t diminish cash flow and other liquid assets available that cover the donor’s living expenses.
These kinds of donations follow the general rule that the deduction for a donation of property to LSH is equal to the fair market value of the donated property. Where the donated property is “gain” property, the donor does not have to recognize the gain on the donated property. This allows for the “doubling up,” so to speak, of tax benefits: a charitable deduction, plus avoiding tax on the appreciation in value of the donated property. As always please check with your financial adviser on your specific tax benefit and contact LSF if you have any questions regarding donating these or other assets.