Tax benefits of donating real estate to charity
Sometimes a real estate investment that seems to hold lots of promise ends up being a liability instead. That’s what happened with Jim and Bob, two casual investors who purchased a $98,000 home in Southern California. The two hoped to remodel the home and flip it for a profit. But things don’t always turn out as expected: the partners ran out of money after only a few months.
Looking for a way to get out of the hassle of ownership and holding costs, Jim and Bob called Kars4Kids Real Estate to inquire about donating the home. They still hoped to be able to claim the benefit of the appraised value of the home for a tax deduction. But would donation rule out that important possibility?
Apparently not—at least not with Kars4Kids in the picture. We expedited the smooth transfer of the home. This included dual signature deed and title insurance, both at no cost. Kars4Kids even took care of the outstanding taxes owed on the property, an amount the donors couldn’t have covered.
And just like that, as quickly as they had gotten into the investment, Jim and Bob were out of it, completely hassle-free!
We love maximizing the tax benefits you get by donating your real estate to Kars4Kids.