31 May Hidden way to profit from your property – Donating the property
If you have a property which you bought through one of the three ways of buying Tax Delinquent properties I am teaching, then you probably have only paid 5-10% of the true market value of that property.
Now it is time to realize the profits on that property and one hidden way often overlooked it to Donate the property to a qualified Charity. I am not an Attorney or a CPA, so this is Not meant as absolute advise but only as something that could spark your interests but requires checking and verification with a CPA and/or Attorney.
If you are able to purchase a property for a few hundred dollars that is assessed for a few thousand dollars you might be able to donate this property to a charity and you might get a tax deduction based on the TRUE Market value of the property and NOT based on the amount you paid for the property, thus bringing you a nice profit at tax time.
NOTE: In the tax law there are different ways to donate. Again I am not an attorney but it is my understanding that you CAN write off the full MARKET VALUE of your taxes IF you donate the piece of land not just to any charity but to a charity which operates a lot with Real Estate. Just like you see in the newspaper articles about “donate your vehicle”… these are charities which specialize in that, and thus if you find a charity (non for profit) in your area which for example specializes in “LAND protection and nature preservation” you might be able to write of 100% of your land value. If instead you just donate to your local “save a Hamster” charity, which has nothing to do with Real estate and Land, you will only be able to write off the amount YOU PAID for the land. As always laws constantly change so please make sure you check on this with your attorney of choice so you do the right thing.
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