Deduction for allowing charitable use of real property?

By George, I think you've got it!

Now if you collected Fair Market Rental, declared it, and donated that amount to a qualified charity, that's a deduction.

By George, I think you've got it!

Now if you collected Fair Market Rental, declared it, and donated that amount to a qualified charity, that's a deduction. ==================== Be careful here - not so fast: See 26 U.S.C. 170(f)(3)(B)(i) - There may be a way. However, those rules are so complex, any tax savings you have will probably be consumed by attorney's fees in researching them. There is also a concern for how long the property would remain a personal residence if she abandons it in favor of another.

A contribution of the right to use real property is a contribution of a partial interest that has no exception. The Sec. 170 paragraph that you cite deals with a donation of a remainder interest in a property not the right to use. There is no title transfer involved here.

Yeah, but the rental income would be taxable, so you'd still end up with no net deduction.

Maybe yes, maybe no. If fair market rent is collected, then the expenses associated with the property (real estate taxes, mortgage interest, depreciation, etc.) would be deductible on Schedule E. There is no depreciation allowable on the property if it isn't being used as a rental.

We, or the OP, need more information to conclude whether there would be any change in tax liability. Moving real estate taxes and mortgage interest from Schedule A and replacing them with a charitable contribution (which would likely differ from the taxes/interest) might affect whether a standard or itemized deduction is taken.

Reporting rental income (could be a loss), also will affect any AGI-limited entries on the return.

Ira Smilovitz

A contribution of the right to use real property is a contribution of a partial interest that has no exception. The Sec. 170 paragraph that you cite deals with a donation of a remainder interest in a property not the right to use. There is no title transfer involved here. ========= Did you read the exception to the exception? Transfers in trust often have a right to use provision....

You lost me. I need a cite. I don't see anything in 170(f) that would allow one to take a charitable contribution deduction for letting a charity use your property.

I should have added.... given the set of facts in the OP.