Home Buying in Farmington>Question Details

Elaine M Bry…, Home Buyer in West Hartford, CT

What are the tax benefits for a property owner to donate his or her property that is worth $8M and what costs, to that new homeowner?

Asked by Elaine M Bryant, West Hartford, CT Wed Aug 21, 2013

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Linda Byrne’s answer
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Hi:

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.

Best Regards,
Linda M. Byrne
lindabyrne@kw.com
860-481-9728
1 vote Thank Flag Link Wed Aug 21, 2013
Are you speaking of 50 Poplar Bluff in Farmington?
1 vote Thank Flag Link Sat Sep 14, 2013
We see issues like this all the time at the Farmington Land Trust. Each parcel is unique, but the tax benefits available are the same. Some costs include Conveyance taxes, capital gain issues, survey, appraisal etc - Depends on your circumstance. Happy to talk offline.
Carol Presutti 860-582-0884 306
1 vote Thank Flag Link Wed Aug 21, 2013
That is really a question for a CPA, estate lawyer, or other money management specialist, and they are not quite so likely to be seeing your question here on trulia. Good luck...
0 votes Thank Flag Link Wed Aug 21, 2013
Thank you, Lisa, I appreciate your feedback.
Flag Wed Oct 2, 2013
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