Welcome Guest. Register Now!  


Non-Profit Organisation Non Profit Organisation


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-17-2014, 05:07 PM
Junior Member
 
Join Date: Feb 2014
Posts: 1
Leasehold improvement donation to 501c3

Our organization is a 501c3 and provides housing to senior citizens. Some of the residents would like to make leasehold improvements to their units and "donate" the improvements back to the company as a way of receiving a tax deduction for the cost incurred.
I'm trying to figure out if this is possible and, if so, what basis is used for the donation amount.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 02-18-2014, 01:56 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by grandaeriefoe View Post
Some of the residents would like to make leasehold improvements to their units and "donate" the improvements back to the company as a way of receiving a tax deduction for the cost incurred.
I'm trying to figure out if this is possible and, if so, what basis is used for the donation amount.
To understand whether a TP can write off leasehold improvement to charity, you must first understand what type of charity will qualify you for the deduction and what types of contributions are deductible.Leasehold improvements,i.e., painting, installing retail counters, partitioning or etc are alterations to a building which are made by a tenant to make the space more usable. TPs usually donate household items,i.e., appliances, bowls and cookware, or utensils or etc. If a TP donates the entire property to the charity, the IRS would permit you to write off the FMV of the property.However, lease hold improvement constitutes a right to use the housing units. Since they are not donating their entire interest in the property, but merely a portion, they cannot claim a tax deduction for the amount of the donation.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Vehicle (car) donation to charity ixijimixi Itemized Deductions 1 03-03-2012 07:52 PM
Leasehold Improvements [email protected] S-Corporation 0 12-01-2011 08:14 PM
Improvement deduction question sonofasailor3 Rental Real-Estate 1 05-05-2011 01:35 AM
Have 1099-misc from non-profit 501c3 does my self-emp tax have to be so high? nicoleshashoua Income 0 03-23-2009 03:37 PM
What are the requirements to claim a charity deduction for donation of a used car? Robbie Miscellaneous 1 02-28-2008 01:01 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.