As the donor, you generally receive a tax deduction equal to the fair market value of the property and that deduction may be carried forward for five years. You also avoid paying the capital gains tax that would otherwise accrue as a result of the sale of the property.
To prevent over-valuation, real estate donations over $5,000 require a qualified appraisal of the property, performed by a qualified appraiser. If the value of the real estate you donate is $500,000 or more, the appraisal must be attached to your tax filing.
Your deduction may be disallowed if you don’t have the appropriate documentation.
