From Zacks -- One of the biggest benefits of donating rental property is that the deduction is figured on the property's fair market value. For example, if you bought a rental home for $50,000 and claimed $20,000 in depreciation on it but it had a $100,000 fair market value, you'd be able to write off the $100,000 value. While the IRS sometimes limits your ability to donate depreciated properties, this limitation doesn't apply to depreciated real estate. When you donate property, you will need to have a professional appraiser prepare an appraisal report to establish its fair market value.
