Donating Your Commercial Real Estate

Commercial property, and apartment buildings whether held by a commercial entity, a company or business, or a private individual—should be an asset. Far too often, however, commercial property becomes more of a liability and a financial drain. In cases such as this, the situation can be turned on its head; donate commercial property that is not performing and enjoy a number of financial benefits.

The following rules apply if your charitable donation of real property is made by a corporation:

If you have held a controlling interest in the corporation and the property has been held for more than one year, the corporation may deduct up to ten percent (10.00%) of the net profit of the corporation (Please check with your tax professional).  Excess contribution amounts can be carried forward up to five years. The fair market value here must be reduced by the amount of accumulate depreciation.

If the corporate has elected "Sub. S" status, then the contribution allowed will be reported on the individual shareholders K1 and may be deducted on the individual return (Please check with your tax professional).

Getting Your Operations from Red to Black Again

If you are holding an un-performing or underperforming commercial property, you probably know the many ways that that property is hurting your financial bottom line. The property holding alone could be the one reason that your company or business is not turning a profit. You may be thinking, as many commercial property holders are, that if you could just unload that burdensome property, you could get your business back in the black.

Fortunately, changes to charitable donation laws make it possible to donate commercial property, unload property burdens, and still benefit financially in the end. Not only will the cost of owning and maintaining a commercial property disappear when you donate commercial property, but significant tax advantages can be enjoyed as well. Current Market Value Tax Deduction. 

The donation of commercial property qualifies you or your business for a tax benefit based on the current fair market value of the property - not on the purchase price of the property. Deductions vary according to the structure of your organization, and we are here to help clarify the tax advantages of donating commercial property to (it is also recommended that you discuss this with your own tax advisor).

Benefits of donating commercial property to

  • Sizable, lasting tax benefit / deductions for years to come
  • Freedom from property taxes.
  • Freedom from property maintenance and other obligations
  • Freedom from liability and insurances.
  • Benefit of knowing that you/your business has helped others.
  • Positive face forward to the public for your generous company.
  • Peace of mind knowing that your commercial property is no longer a drain or burden accepts commercial real estate donations anywhere in the United States and abroad, and uses your donation to help support numerous worthy charitable causes worldwide.

Fill out our donation form to get started today or call our Business Development Department at 1-800-385-0422 ext. 6.