Charitable Real Estate Bargain Sale & Appraised FMV Donation

Charitable Real Estate & Bargain Sale Tax Modeler

Calculate tax deductions and net cash savings when donating discounted property or land to 501(c)(3) charities or 501(c)(13) non-profit cemetery associations.

Property & Valuation Inputs

Actual Purchase Price / Cost Basis ($)

What you paid at distressed auction, tax lien, or probate.

Certified Appraised Fair Market Value (FMV) ($)

Independent USPAP appraisal value prior to deed transfer.

Holding Period Before Donation

Donor Annual Adjusted Gross Income (AGI) ($)

Subject to 30% annual AGI limit with 5-year carryover.

Combined Marginal Tax Rate (Federal + State)

40%

Donation Type

Total Allowable Tax Deduction

$300,000

Generates $120,000 in direct cash tax savings.

Net Economic Arbitrage

+$20,000 Gain

Cash tax savings vs purchase cost

Qualified Long-Term Holding Period (> 1 Year)

Under IRC § 170(e)(1), holding property for > 365 days unlocks the full appraised Fair Market Value ($300,000) deduction instead of just your cost basis.

30% AGI Limitation & 5-Year Carryforward Schedule

Max $120k / yr

Tax Year	Deduction Used	Cash Tax Saved (@40%)	Remaining Carryforward

IRS Form 8283 & Non-Cash Charitable Guardrails

✅ Qualified Appraiser (USPAP):

Appraisal must be performed no earlier than 60 days before the deed conveyance.

✅ Donee Acknowledgment:

501(c)(3) or 501(c)(13) must sign Part IV of Form 8283 acknowledging receipt.

✅ Deed of Conveyance:

Full fee simple transfer recorded with the county clerk without retained private benefits.

✅ 5-Year Carryover:

Any deduction exceeding 30% of annual AGI can be carried forward for up to 5 consecutive tax years.