The following rules apply if the donated property is owned in your own name, with your spouse or other persons:

  • If you have held the property for more than one year, it is classified as long term capital gain property.  You can deduct the full fair market value of the donated property.  Your charitable contribution deduction is limited to thirty percent (30.00%) of your adjusted gross income.
  • Excess contribution value may be carried forward for up to five years.  If the property has been depreciated, the fair market value must be reduced by its accumulated depreciation through the date of contribution.  Fair market value is most commonly determined by an independent appraisal.
  • If you elect to deduct your cost basis of the donated property, you are allowed a deduction of fifty percent (50.00%) of your adjusted gross income.  Excesses here again can be carried forward up to five years.  Which method you elect is dependent on the cost basis in the property donated, your tax bracket, the age and health of the donor and whether you plan to make future contributions.

Corporate Donors

If you have a controlling interest in the corporation and the property has been held for more than one year, the corporation can deduct up to ten percent (10.00%) of the net profit of the corporation.

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 corporation has elected “Subchapter S” status, then the contribution allowed will be reported on the individual shareholders K1 and may be deducted on the individual return.

Monroe County Habitat for Humanity is a 501(c)(3) non-profit corporation.


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