Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 4 years ago,

User Stats

27,790
Posts
40,737
Votes
Nathan Gesner
Property Manager
Agent
Pro Member
  • Real Estate Broker
  • Cody, WY
40,737
Votes |
27,790
Posts

Need advice: Using a property for charity

Nathan Gesner
Property Manager
Agent
Pro Member
  • Real Estate Broker
  • Cody, WY
ModeratorPosted

Background: A woman owned a property with her primary residence, a guest house, and a warehouse. She used the warehouse to start a food distribution center in 1998. She passed away last year and the kids are only interested in selling the property and running off with the money. They don't care about maintaining her charity. I've been looking for a way to serve the community and this seems to be a perfect fit! I can purchase the property to ensure her legacy continues uninterrupted. 

I would purchase the property for around $500,000 with $200,000 in cash and $300,000 financed. The two residential rentals would pay the mortage plus provide an additional $1,300+ per month. I would allow the food distribution center to use the warehouse at no charge.

My question: if the warehouse has a market value of $1,000 a month and I let them occupy for free, do I get to write off $12,000 a year in charitable contributions? This is strictly a charity and not a money-making scheme, but I want to confirm I'm not leaving money on the table by missing out on a tax deduction or other benefit.

If anyone has advice about a situation like this, I would love to hear from you. I have my CPA looking into this but she isn't an expert on investment property and deductions.

  • Nathan Gesner
business profile image
The DIY Landlord
4.7 stars
159 Reviews

Loading replies...