Giving Appreciated Property to Charity in Oregon
If you own property in Oregon that has increased in value over time, you may be wondering how to make the most of your assets. One option that can benefit both you and your favorite causes is to donate your appreciated property to charity.
Donating appreciated property, such as real estate, stocks, or mutual funds, can provide significant tax advantages for you while supporting the charitable organizations that matter to you. Here are some of the benefits of giving appreciated property to charity in Oregon:
You can avoid paying capital gains tax on the appreciation of your property. If you sell your property and donate the proceeds, you will have to pay tax on the difference between your cost basis and the sale price. However, if you donate your property directly to a qualified charity, you can bypass this tax and save more for yourself and for charity.
You can claim an income tax deduction for the fair market value of your property. The fair market value is what a willing buyer would pay a willing seller for your property at the time of donation. You can deduct this amount from your taxable income if you itemize your deductions on Schedule A of Form 1040. The deduction is subject to certain limitations based on your adjusted gross income (AGI) and the type of charity you donate to.
For donations of cash to public charities, such as schools, hospitals, or churches, you can deduct up to 60% of your AGI. For donations of appreciated property to public charities, you can deduct up to 30% of your AGI. Any excess deduction can be carried forward for up to five years.
For donations of cash or appreciated property to private foundations, such as family foundations or donor-advised funds, you can deduct up to 30% of your AGI for cash and up to 20% of your AGI for appreciated property. Any excess deduction can be carried forward for up to five years.
You can make a lasting impact on the causes you care about. By donating appreciated property to charity, you can support the mission and vision of the organizations that align with your values and goals. You can also create a legacy of generosity that inspires others and makes a difference in your community.
How do I donate appreciated property to charity in Oregon?
The process of donating appreciated property to charity in Oregon may vary depending on the type and condition of your property and the requirements of the charity you choose. However, here are some general steps that apply in most cases:
Identify a qualified charity that accepts donations of appreciated property and has a purpose that matches yours.
Contact the charity and inform them about your intention to donate your property. Ask them about their policies and procedures for accepting such donations.
Obtain an independent appraisal of your property from a qualified appraiser who follows IRS (Internal Revenue Service) guidelines. You will need this appraisal report for tax purposes and for substantiating the fair market value of your donation.
Transfer the title or ownership documents of your property directly to the charity or to a trustee if you are using a charitable trust.
Obtain a written acknowledgment from the charity that includes the name and address of the charity, the date and description of your donation, and whether any goods or services were provided by them in exchange for it.
File Form 8283 with Form 1040 if you claim a deduction over $500 for noncash charitable contributions.
Keep all records related to your donation, such as appraisal report, title transfer, receipt, and correspondence with the charity, for at least seven years after filing your tax return.
If you are interested in giving appreciated property to charity in Oregon, please contact us today.
