Donate Industrial Real Estate - Industrial Property Donation

The Tax Benefits Of an Industrial Property Donation can be very beneficial to those looking to rid themselves of unwanted industrial properties. Whether you are a private individual or a structured, legal corporate entity, you stand to gain many tax benefits with industrial property donation.

Who Is Industrial Property Donation For?

Industrial property donation may be a very good consideration for you if:

You were gifted or inherited an industrial property
Industrial property is more of a burden or liability than an asset
Industrial property taxes are unbearable
You are concerned about your liability in reference to the property or to structures,
equipment, machinery, etc. on the property
You hold an industrial property—either paid off or with mortgages or liens—that you would like to see benefit others
Industrial property is draining you or your business financially—due to the unexpected nature of the gift, unrealized purchase potential, or even catastrophic destruction of property on the site

Tax Deduction Benefits when you Donate Industrial property include:

Tax benefits vary according to your status as owner of an industrial property and according to the legal structure of your organization. An expert charity dealing in real estate transfers and/or your accountant, tax, or financial advisor can tell you more about the specifics of your situation, but the following is a general overview of the tax advantages of industrial property donation.

• Individuals can benefit from industrial property donation by deducting the full fair market value of the property if it has been held for more than a year.

• Corporate donors may deduct up to ten percent of the corporation's net profit (assuming you have held a controlling interest for more than a year and that the property has been held for more than a year).

• S-Corporations, Partnerships, and LLC's cannot claim a deduction for an industrial property donation, but the contribution will pass on a pro-rated basis (calculated according to percent ownership) to shareholders, who can then claim the deduction on their personal return. (*Partnerships and LLC's can claim deductions without having a basis in the company.)

In each instance, excesses can be carried forward and deducted for up to five years, so that the donated industrial property can continue to produce tax advantages for several years after the industrial property donation.

Industrial property donation can be either a generous exercise in philanthropy, a solution to a financial difficulty, or both. Talk more with your financial advisors, or contact a professional charity that specializes in charitable real estate transfers and find out if industrial property donation is in your or your business's financial best interests. Complete the form below to get started or call 888-228-7320

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