Are Property Donations to a Charity Tax-Deductible?


Quick Answer

Noncash donations of property to charitable organizations are tax-deductible, according to Legal Zoom. The amount of the donation is based on the fair market value when it is contributed, states the Internal Revenue Service.

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Full Answer

The IRS limits the total amount of tax deductions a tax filer can claim in a given year, according to IRS Publication 526. In most cases, deductions are capped at 50 percent of adjusted gross income, though certain conservation organizations have a higher limit. Filers with income above certain levels are limited further in their tax deductions.

Only donations to qualified organizations are tax-deductible, according to Legal Zoom. Donations to groups that are organized for religious, charitable, educational, scientific or literary purposes qualify as tax-deductible, as do donations to groups intended to prevent cruelty to children and animals.

Claiming a tax deduction on donated property requires a receipt, according to Legal Zoom. If the value of the donated property is less than $250, a simple receipt stating the date and type of donation is sufficient, while donations up to $500 require acknowledgment from the charitable organization in writing. For donations up to $5,000, the origin of the property's acquisition by the donor must be disclosed and an additional IRS form filed. Donations of goods worth more than $5,000 have to be appraised independently.

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