If a 501c3 organization sells real property within months of it being donated can the donor still write it off?
What I am wondering is if the sale of the property would affect the amount that the donor could write-off. In this economy real property may sell for less then what it is appraised for. Would the donor get a write off for what its appraised for or what the organization sells it for?
Public Comments
- when they sell it, do they give you the money from the sale?
- Yes, of course. If a legitimate donation is made to a charity, it doesn't matter what the charity does with the donation once it's theirs. Places like Salvation Army and Goodwill sell *all* the donations that are made to them.
- Yes If there has been a clear transaction with no restrictions as to the use of the donated property, the donor has no control over what the organization does with it. Frequently the whole intent of the donation is for the donor to get the deduction and the organization to generate funding for other activities within its charter.
- Yes, what the charity did with the property was out of your control. You donated it to them and earned the write off.
- The writeoff amount doesn't change, it's still the fmv at the time of the donation, if the item is not a car. For a car, the donation is what the organization sells it for. Cars have special rules since value depends so much on condition and many people donated junkers and then tried to claim the blue book value for a car in great condition.
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