I am not clear if you are donating to a new person or a charity of some sort. If it is to a home owner then both of you need to speak to a CPA and an attorney. (Both seeking separate council and an accountant.) If it is to a charity then look into a Charitable Easement/Contribution. There are AGI rules and it binds the future owners. The recipient can monitor the improvements without absorbing the entire cost. However, the recipient must be a qualified organization and it must be made available to the public at certain times during the year. If the property is historic it must be on the national register. Also, are you looking to do a 1031 Exchange or any other type of exchange?
This is very interesting to me. Some day I would like to be at a point where I can give someone in need a home. Please keep me posted. I would like to know how it all works out.
Linda M. Byrne
Carol Presutti 860-582-0884 306