Frequently Asked Questions: Donating property to DAV
If you have a real estate asset that is costing you money or not being utilized, donating it to DAV (Disabled American Veterans) is a great way to leverage one of your most valuable investments to achieve maximum impact for the men and women who served and sacrificed for our country.
We make the donation process easy, and you may even be able to claim a significant tax deduction. Here are a few common questions (and answers!) about donating your property to DAV:
What type of property donations does DAV accept?
We accept many different kinds of property types as long as there is equity — even if you owe back taxes, have a mortgage balance or have deferred maintenance. Common property types are land, farms, second homes, rental properties, commercial real estate and estates.
What are the benefits of donating real estate?
If you itemize deductions on your tax return instead of taking the standard deduction, donating your real estate can unlock additional funds for DAV in two ways. First, you potentially eliminate the capital gains tax you would incur if you sold the real estate yourself and donated the proceeds, which may increase the amount available for charity. Second, you may claim a fair market value charitable deduction based on IRS gift appraisal guidelines.
How will the tax deduction be determined?
Real estate donations are based on the full appraised value — not the sale price. In most cases, donors may deduct the difference between the cash received and the fair market value.
Can I donate real estate with a mortgage balance?
Yes, you can donate real estate with a mortgage balance. The proceeds of the auction sale will be used first to pay off any mortgage balance. Prior to the auction, our real estate partner will determine if the likely value exceeds the mortgage balance. In cases where an asset doesn’t have enough equity to result in a surplus, we’ll unfortunately be unable to accept it.
How long does it take to complete a real estate donation?
Most property donations will be completed within 90 days, and some as quickly as 14 days. Our goal is to maximize the value of the property.
Who pays commissions and/or closing costs?
DAV will pay off all loans, liens, commissions owed and all closing costs. The donor is generally not asked to pay anything out of pocket. We make the process as easy as possible for you.
There are a variety of reasons to donate your real estate — from life-changing circumstances to reducing tax liability to a simple desire to support DAV. Whatever your reason, your property donation will make a truly incredible impact for our nation’s heroes.
Find out more about DAV property donations by visiting dav.org/real-estate-donation or calling 844-277-4663.
*This article is only intended to be a general overview of some donation considerations and is not intended to provide tax or legal guidance. Please consult with your tax or legal advisor.