Step one
Tell us about the building
Address, use, occupancy, leases and anything owed against it. If you have rent rolls, an environmental report or a recent appraisal, send them. A specialist reviews and calls back.
Donate commercial property to charity, vacant or leased, in any state
Commercial property specialists: (888) 228-7320
Donate Commercial Property to Charity
Real Estate with Causes accepts donated commercial real estate nationwide: office buildings, retail and strip centers, restaurants, former business premises, mixed-use buildings and church or institutional properties, vacant or with tenants in place. We prepare and record the deed ourselves, and on commercial buildings the numbers often support us absorbing costs a smaller property could not carry.
Tell us about the property
Every property gets a look. Name, phone and email are the only required fields.
Fully IRS Compliant
We Handle the Paperwork
Form 8283 Done Right
501(c)(3) Recognized Charity
How donating commercial property works
Commercial gifts involve more documents than a house, but the sequence is the same. We review, we agree the structure with you and your advisor, and then we record the deed.
Step two
We agree the structure and record the deed
Your advisor and ours confirm how the gift is structured, including any mortgage or leases. Our staff prepares the deed for the state and records it with the county.
Step three
The building becomes ours
Taxes, insurance, maintenance, tenant management and liability transfer on the day the deed records. You receive a written acknowledgment and, where required, a signed Form 8283.
Selling commercial property versus donating it
For an appreciated building held for years, the tax difference between the two routes can be substantial. This is how they compare. A sale is sometimes the right answer, and we will say so.
| Selling the building | Donating the building | |
|---|---|---|
| Time to be done with it | Broker marketing, buyer due diligence, financing contingencies and tenant estoppels. Specialized or vacant buildings can take a long time to sell. | No marketing period and no buyer financing. The schedule is set by title, leases and any lender, and we tell you which of those apply on the first call. |
| What you pay | Broker commission, seller closing costs, transfer tax where it applies, and carrying cost until closing. | No escrow, no closing and no commission. The qualified appraisal is your expense and your choice of appraiser. On commercial buildings we more often absorb costs such as cleanout or back taxes where the value supports it. |
| Depreciation | Depreciation you have taken is recaptured and taxed on sale. | Depreciation taken against the building can reduce or change the deduction. Your advisor will need your depreciation schedule. |
| Tax outcome | Capital gains tax on the appreciation above your adjusted basis, in addition to recapture. | A charitable deduction reported on Form 8283. For property held more than a year the deduction is generally fair market value, limited to 30% of AGI, with a five-year carryforward, subject to the depreciation rules. |
| Tenants in place | Buyers price the leases and may require estoppel certificates from every tenant. | Leases transfer with the property and we take over as landlord. |
| Where the value goes | To you, less commission, closing costs and tax. | To our charitable programs, less the cost of the transfer and the sale. |
We do not provide tax or legal advice. Deduction outcomes depend on holding period, property type, use and a qualified appraisal. See IRS Publication 526, Publication 561 and the Form 8283 instructions, and consult your own advisor.
The kind of building sets the plan
Six kinds of commercial property that reach us regularly. Find the one closest to yours, or call and describe it.
The tax deduction for donating commercial property
Commercial property carries rules a house or vacant lot does not. These are the three that most often change the answer.
How the deduction is calculated
For commercial property held more than a year, the deduction is generally fair market value as established by a qualified appraisal, limited to 30% of adjusted gross income, with a five-year carryforward. Depreciation taken against the building can reduce the amount, so your advisor needs your depreciation schedule.
Appraisal and documentation
Above $5,000 the IRS requires a qualified appraisal and Form 8283 Section B, signed by the appraiser and acknowledged by us. Above $500,000 the appraisal is attached to your return. Commercial appraisals usually rely on income and comparable sales.
Mortgages and entity ownership
A building with a loan becomes a bargain sale, with gain to you on the debt portion. Property held in an LLC, partnership or corporation is donated by the entity, which has its own reporting. Both are handled regularly and both need your advisor involved early.
Commercial property donation questions, answered
Can I donate a building that still has tenants in it? +
Yes. Leases transfer with the property and we become the landlord. We will want the rent roll and copies of the leases so we understand the income and any obligations, such as renewal options or tenant improvement allowances, before we accept.
The property is owned by my LLC. Who actually makes the gift? +
The LLC does, since it holds title. How the deduction flows through depends on how the entity is taxed, and a single-member LLC is treated differently from a partnership. Bring your advisor in early and we will work with them on the documents.
Do you require an environmental report before accepting a commercial building? +
On many commercial properties, yes, and on former gas stations, dry cleaners, auto shops and industrial uses it is almost always part of the review. If you already have a Phase I report, send it. If you do not, we will talk through what is needed before anyone spends money on one.
What happens to the building after you receive it? +
Most donated commercial property is sold and the net proceeds fund our charitable programs. Occasionally a building is held and used directly, for example as program or office space. Either way, the decision is ours after the deed records, and we will not ask you to manage anything.
Can I donate part of a commercial building and keep the rest? +
Partial interests, such as a percentage share or a building without its land, follow strict rules and often do not qualify for a deduction. An undivided fractional interest in the whole property can qualify in some cases. This is one to discuss with your advisor before deciding.
Not commercial? We take these too
Eight other property classes, each with its own transfer rules and its own page.
Tell us about the building and we will review it
Send the address and what is in it, tenants, loan and all, and we will tell you plainly what a donation would look like.