Question for tax/investment experts

[golfgal]

Semi-hypothetical question, if we were to donate our house to our church, what/how could we write that off on our taxes? Our house value is about $250,000.

 

[icebrat001]

Whoa, that is a really nice jester. I hope someone answers your question. Maybe you should ask this over on the Budget Board, DisneySteve probably has an answer.

 

[golfgal]

Whoa, that is a really nice jester. I hope someone answers your question. Maybe you should ask this over on the Budget Board, DisneySteve probably has an answer.

Ok, good idea. While it is a "nice" gesture, some of it would be for us. We are in the process of moving out of town and the Real Estate market is a little slow. If we could donate the house and get enough of a tax right off to cover the down payment on the new house it would solve that for us and our church is looking for a home for the priest away from the church and our house would meet their needs very nicely.

 

[salmoneous]

Somewhat tricky - here's a simplifed answer:

There is a 50% limit on all charitable donations - so you can never deduct more than 50% of your income no matter how large your gift.

The limit drops to 30% for "capital gain property"

You get a choice of how to value the house. If you use the current market value, you are subjet to the 30% limit. Or you can use what you paid for the house + cost of improvements and be subject to the 50% limit.

 

[golfgal]

Somewhat tricky - here's a simplifed answer:

There is a 50% limit on all charitable donations - so you can never deduct more than 50% of your income no matter how large your gift.

The limit drops to 30% for "capital gain property"

You get a choice of how to value the house. If you use the current market value, you are subjet to the 30% limit. Or you can use what you paid for the house + cost of improvements and be subject to the 50% limit.

Ok, thanks, I figured it would be something like that or people would be doing that all the time.