Hurricane Katrina came ashore 2 years ago and completely leveled our home. All that is left is a slab. It is still a residential area and are considering donating the property for a family to rebuild a home there. We have bought a new home and do not wish to hold on to this property. What would be the best thing to do. Sell, Donate or just sit on the property for a long term investment?
2007-09-04 16:25:06 · 6 answers · asked by susanloree042579 1 in Business & Finance ➔ Renting & Real Estate
You could check with Habitat for Humanity and see if they will accept a donation of a foundation and give you tax benefits. If you want to help someone else out you could do that. If you need the money then you could sell but the proeprty values I'm sure are not that great at this time. You could hold on to it until the property values go up but that will take some time,
2007-09-04 16:42:09 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The tax benefit from a donation would not be large; the amount depends on your tax bracket. If you want to do that, get at least two independent appraisals of the worth of the property; the average will presumably be accepted as the value of the donation by the IRS. My own view: sit on it. Evidently, you don't need the money from a sale, and the tax benefit of a donation is too small to fuss with. If you really want to get rid of it, sell it.
2007-09-04 16:33:47 · answer #2 · answered by Anonymous · 0⤊ 1⤋
I would sit on it. the donation basis is fair market value know and donating it would not give much if any tax deduction right know. Selling would give you a large non deductible loss.
All this is mot if you received any type of insurance settlement on the property.if you did, you need to seek out a professional tax consultant.you may have a large deductible casualty loss(loss over 10% OF AGI)
2007-09-04 16:35:39 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I'd sell it...
You could donate it, but I am not sure who would want it.
As for a long term investment, that one is easy... If you did not own it, would you BUY a empty slab as a long term investment? If the answer is NO, which I assume it is, then DUMP IT!
Just sell it for a low price, get rid of it, and move on.
2007-09-04 16:33:24 · answer #4 · answered by Mike 6 · 0⤊ 1⤋
Don't donate it. Frankly, if you don't want it neither does any charity. And your tax deduction is limited to what the charity was actually able to sell it for so it's not as if you could put whatever value on it you want.
2007-09-04 17:11:33 · answer #5 · answered by Box815 3 · 0⤊ 0⤋
I would guess the land value ? ( as a deduction)
Get a form from the IRS first so that there are NO misunderstandings tho . . .
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2007-09-04 16:31:43 · answer #6 · answered by kate 7 · 0⤊ 1⤋