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Answers (8)
- wetdawgs
- Contributions:26833
If you chose to donate the property, you are still responsible for paying the mortgage or getting the recipient to take over the payments.
- sunnyview
- Contributions:25139
"Don't forget about museums, public radio stations, schools, and historic societies when researching your 501c3 gift options"
All of those are excellent places to donate. Many of them also have gift planners that can help you structure the donation in advance so that it goes to the exact use that you want in that organization.
All of those are excellent places to donate. Many of them also have gift planners that can help you structure the donation in advance so that it goes to the exact use that you want in that organization.
- Pasadenan
- Contributions:21458
There are all kinds of reasons a 501c3 tax exempt organization may accept a gift of real property, even if there is a debt on it. One such case is if they need the specific property for expansion due to being contiguous with their already owned property. Another reason may be the equity in the property. Another reason may be for housing for their staff, or housing that meets the specific stated objectives of the organization in their 501c3 documents.
But not all 501c3's are equipped to accept Real property gifts, especially when there is little equity and substantial debt.
Still, if the problem is income to make the payments, and there is substantial equity in the property, and one is near death, often a 501c3 can accept the gift, continue to allow you to live in the property until death, give you a nominal living expense stipend, allow you a tax write off on your present income tax liability on your schedule A itemized deductions, and the 501c3 does not have to pay property tax on the property.
The 501c3 then may liquidate the property at your death for use for other outreach programs, or may use the property directly as part of their outreach programs.
The 501c3 really needs a good estate planner to assist with such gifts, so smaller 501c3's are very unlikely to accept such gifts.
Don't forget about museums, public radio stations, schools, and historic societies when researching your 501c3 gift options.
But not all 501c3's are equipped to accept Real property gifts, especially when there is little equity and substantial debt.
Still, if the problem is income to make the payments, and there is substantial equity in the property, and one is near death, often a 501c3 can accept the gift, continue to allow you to live in the property until death, give you a nominal living expense stipend, allow you a tax write off on your present income tax liability on your schedule A itemized deductions, and the 501c3 does not have to pay property tax on the property.
The 501c3 then may liquidate the property at your death for use for other outreach programs, or may use the property directly as part of their outreach programs.
The 501c3 really needs a good estate planner to assist with such gifts, so smaller 501c3's are very unlikely to accept such gifts.
Don't forget about museums, public radio stations, schools, and historic societies when researching your 501c3 gift options.
- sunnyview
- Contributions:25139
You can try, but the non profit has to be willing to support the property and as long as your name is still on the loan you are responsible for the debt. It would be like donating a car that was about to be repossessed. I'm not sure that there is any benefit to a non profit doing that in most cases.
- Sharon Lewis, "Sharon Lewis"
- Contributions:3917
Great question, I would ask your accountant and attorney about your specific situation.
- Richard Breglia, "Richard Breglia"
- Contributions:52
If a property is in foreclosure and there is equity I would say yes. If the property is underwater and below market value I would say no. With a mortgage on the property you would still need to get the non profit to clear the mortgage balance or the bank would not give title. Why would a non profit agency take a house that is underwater and assume debt?
- Phil Zimbardi, "TOP END Properties"
- Contributions:209
Yes, I have heard of it before. In some cases the tax deduction may be more than what they can actually sell it for.
Yes, you can do whatever you want with the property, you still own it up to the foreclosure...
BUT the loan and foreclosure aren't going away, they have a prior position, so realistically, it won't make any difference.
BUT the loan and foreclosure aren't going away, they have a prior position, so realistically, it won't make any difference.
If a homeonwer is in foreclosure can they donate a property to a non-profit entity?
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