My neighborhood is trying to establish a new pedestrian/bike path with the city which may involve the need for a few properties to give small strips of land to the city to make it possible. Is the value of the land given to the city claimable as a "donation" and if so, at what value, fair market value as of date of transfer or some other calculation? (Note that this situation is NOT one where the city would claim or take the land by emminent domain. And in case it matters though I would think it shouldn't, the jurisdiction happens to be Palo Alto, CA.) Thanks!
2007-03-22 10:17:18 · 2 answers · asked by Jonathan L 4 in Business & Finance ➔ Taxes ➔ United States
Yes it is a deduction on Schedule A
The value would be the fair market price the day you donate it. You could have the land appraised to get that value.
2007-03-22 10:51:34 · answer #1 · answered by Jo Blo 6 · 1⤊ 1⤋
The only way it would not be a deductible charitable contribution would be if the city required you to contribute the strips of land as a condition for building on your property. Given that the property is in Palo Alto, your charitable deduction will be quite valuable. You will need a qualified appraisal and Form 8283.
2007-03-22 19:48:31 · answer #2 · answered by mattapan26 7 · 0⤊ 0⤋