Kars for Kids offers a way to financially gain from Real Estate Donations
Way back when, most of us thought of charity as inserting some pennies into a charity box. Sometimes that box was designated for a specific church or synagogue and sometimes it was generic charity. Panhandling has virtually been common practice since the first days of creation.
In modern times as infrastructures and economics get more intricate and complicated the United States government through the IRS has found ways to encourage people to donate to charity and at the same time have gains and accountability as well.
Giving to charity has evolved from dropping those pennies into the can to donating cars, boats, and lots more. Recently there has been a new method of giving to charity and that is donating actual land/property. Many express amazement at what people are actually parting with. When it was cars we were astounded, as this is a legal piece of property and quite valuable at that. Now people aren’t just writing checks but giving full pieces of land, sometimes with fully functional homes built on them!
As with all charity donations each type of donation has its own laws and regulations. Many want to get rid of their property but don’t know how to go about it. What will they gain? Will it be easy? Will it go to a legitimate cause?
Kars4Kids recently stepped in to fill this need.
Eli Fried, Financial Director of Kars4Kids Real Estate Division says there are two major reasons why donating a home or parcel of land to a charity may be attractive. Many properties can be difficult to sell. There may possibly be even years where the property just sits there and the owners wait anxiously to sell it and make back what they put into it. Or the property has too many things to repair and it is just too costly both in time and in money for the owners who have since moved on and wish to be rid of this headache. Donating it on the other hand is quick and painless.
The second main benefit includes the potential tax value one can ultimately gain from a property donation. Firstly, there’s the actual fair market appraisal value that is allowed for the deduction. On that amount one will not pay taxes. An example would be if one made $200,000 during that fiscal year and the property was valued at $70,000 then that person will only pay taxes on $130,000. Not only that, but if this property was owned for more than a year and now it’s donated and it went up in value, the capital gains will not be taxed as well. Pretty cool!
So it’s essentially this advantage of having a piece of property taken off one’s hands when it is just a source of anxiety that is a major contributor to why one would donate their house or piece of land to a charity. They want to part with it, get some value, stop paying bills, and stop worrying about liabilities associated with owning a piece of land.
So where does the money actually go? Kars for Kids funds many amazing educational and supplemental programs for Jewish children throughout the United States. Helping keep young teenagers off the streets over the weekends, helping families unite and enjoy quality bonding time, helping children with clothing and school supply drives. These are just some of the programs which the Kars4Kids Real estate is able to assist when someone donates a piece of property.
When a potential donor calls Kars4Kids to weigh their options and see if this is a good idea for them, they get a full financial assessment. Eli Fried and his team evaluate the property and provide appropriate advice for what can be done.
When looking around and seeing what value there is in donating a piece of property to a charity getting financial sound advice goes a long way. Kars for Kids may be a great way to go.