What are the (good) tax implications of giving away a property?

[Will Gaston]

All:

I made a (terrible) RE investment in 2007 and bought a property for 24k and put about 35k into it with the intention of flipping the property. 

That did not happen.

I have rented it off and on since then for $495/month. It is need of some major Cap Ex (about 10k) and I'm not interested in throwing away more good money after bad. It's in a war zone-ish area and totally outside of my market/scope.

So I listed the property for sale for 37k several months ago and after a couple of price drops it is down to 22k with no offers. I believe the property is probably worth ~15k now. My agent says she thinks she has someone who will pay 10k, but my listing agreement says that I will pay each agent 1k. After everything, I'll probably walk with only $7500 if I sell it for 10k.

To make matters even worse/funnier, I am a 20% member so I will only walk with about $1,500.  So I'm thinking about just talking my partner into giving the property away to his church. He'll probably go with whatever I suggest as he is resigned to our fate as well.

Has anyone ever given property to a church and or non-profit? If so, what are the tax benefits of doing so? Is there anything I need to look out for?

The county's current assessed value of the house is 45k in case that matters.

[Natalie Kolodij]

Donations over $5,000 require an appraisal. 

I believe you'd need to get an appraisal on the property and then the donation will pass through and you will each get a deduction for non-cash donation equivalent to your ownership percentage.