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Monthly Archives: June 2017

What are the Tax Benefits of Donating Real Estate To A Church Or Charity

Donating real estate to a charity is not only for the rich. For many people and companies, donating real estate is a way to get rid of unwanted property. This relieves the liability they have to the property including taxes and insurance costs.

The following are the rules that apply for real estate donation:


If the property is owned in your own name, with your spouse or other person and you have held the property for more than a year, it is classified as long-term capital gain property. The full fair market value of the donated property can be deducted. The charitable contribution deduction is limited to thirty (30%) of your adjusted gross income.

The excess contribution can be carried forward for up to five years. If the property has been depreciated, the fair market value must be reduced by its accumulated depreciation through the date of contribution. Fair market value is usually determined by an independent appraisal.

If you elect to deduct your cost basis of the donated property you are allowed a deduction of fifty percent (50%) of your adjusted gross income. Again, you may carry the excesses forward up to five years. Selecting the method you elect to donate the property should be made on the cost basis in the property donated, your tax bracket, the age and health of the donor and whether future contributions are planned.

The following rules apply if a corporation makes your contribution, these rules apply:

If the property has been held for more than one year and you have controlling interest in the corporation, the corporation can deduct up to ten percent (10%) of the net profit of the corporation. Like individual who donates property, the corporation can carry the excess amounts up to five years. The fair market value must be reduced by the amount of accumulated depreciation. If “Subchapter S” status has been elected, the contribution allowed must be reported on the individual shareholders K1 and may be deducted on individual returns.

The following rules apply if a partnership, S-Corporation or limited liability company is making your contribution:

A deduction for the property donated may not be claimed by the corporation. The contribution passes to the individual shareholders on a pro-rated basis dependent on the percentage of ownership in the S corporation. The shareholder can claim the deduction on the individual tax return. The carry forward rules and limits will apply.

Partnerships and LLC contribution rules are the same as an S corporation with one exception. The partners or members can claim a deduction even if they have no basis in the partnership or LLC.

Real estate investing can be risky. Each deal can be a winner, a loser or a break even. It is important to fully research all aspects of a deal and it is always important to consult a CPA or an attorney with specific question. Your CPA or attorney should know your specific tax benefit.

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New Developments in Puerto Vallarta Real Estate

Puerto Vallarta is one of the most vibrant cities in Mexico. Therefore, it does not come as a surprise to know the Puerto Vallarta real estate market is also vibrant. The property market in Puerto Vallarta is always in news for new developments.

Such is the confidence of the investors in Puerto Vallartas long term future that the real estate market in Puerto Vallarta didnt slow down considerably even when the recession scourged USA and much of the western world. The prices did dip and demand also slowed down but what was quite evident was this was a knee jerk reaction of short term investors. The long terms investors who acknowledge Puerto Vallarta preeminence as a tourist magnet stayed invested in the real estate market and just waited to storm to pass over. Real estate investors know the crises are cyclical in nature. Puerto Vallarta is blessed with so much beauty and tourist infrastructure that it will continue to perform strongly in tourism sector.

Tourism sector is the precursor to all other development and economic activities in Puerto Vallarta. A strong tourism sector promotes infrastructure development, ramping of city amenities, gives renewed life to economy of a city and increases the demand for real estate. Land, hotels and homes are needed not only for tourists and expatriates but also for the work force that migrate to Puerto Vallarta for jobs. This has resulted in the rise of middle class in Puerto Vallarta with disposable income and aspirations to live a good life.

Real estate developers have been introducing new projects to this ever increasing demand for luxury Puerto Vallarta condos. One such development is Signature by Pinnacle. On 4th august, 2011, there was a ground breaking ceremony at Signature by Pinnacle. The excavations are in full force now and soon, the work on foundations will commence.

‘Signature by Pinnacle’ is a 40 unit development located block from Pinnacle Residences in the heart of Puerto Vallarta’s Old Town. It is just a short walking distance- just hop the Pinnicular down to Las Olas. All amenities and facilities are within your reach and a walking distance sway. This is also the heart of Puerto Vallarta. If you have heard about the charming character of Puerto Vallarta, this is where you will experience it.

The views of the area are also spectacular. One can see the Banderas Bay and downtown Puerto Vallarta. No wonder, Signature by Pinnacle has the one of the most convenient and coveted locations in all of Puerto Vallarta.

The project consists of 15 one bedroom, 20 two bedroom and 5 three bedroom Penthouses.

Each condo has marble flooring throughout, granite countertops, high-end stainless steel appliances, private laundry, built in BBQ and bar, and large terraces with bay and town views.

If you are looking for a Puerto Vallarta condo with great location, view, close access to beach and near all the amenities, then Pinnacle will surely grab your attention.