Land donation to a nonprofit

Forum|Forum|1 year ago
June 26, 2024
1 reply
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My wife and I sold some land to Habitat for Humanity at a large discount. We paid $20k for the land in 2017, was appraised for $84K this year, and sold it to HFH for $10K. How will we treat this donaton on our 2024 taxes?

Ask the Experts - Retirement II - June 2024

marctu

So this is a bargain sale. A bargain sale occurs when a taxpayer sells property to a charitable organization for less than its fair market value. The fair market value less the value returned is a charitable gift.

The charitable deduction is also limited to 30% of AGI, with a five-year carry forward. In some cases, the income tax savings may be spread over one to six years.

Thanks again for the question @John Patrick10

All the best,

Marc

Employee Tax Expert

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