The space would be used soley by the non profit. We have nothing in it. Could we charge, say 800 per month but market value is 2500... deducting the difference as donation in kind?
This, from IRS Publication 526:
Partial Interest in PropertyGenerally, you can't deduct a charitable contribution of less than your entire interest in property.
Example 1.
You own a 10-story office building and donate rent-free use of the top floor to a charitable organization. Because you still own the building, you have contributed a partial interest in the property and can't take a deduction for the contribution.
Example 2.
Mandy White owns a vacation home at the beach that she sometimes rents to others. For a fund-raising auction at her church, she donated the right to use the vacation home for 1 week. At the auction, the church received and accepted a bid from Lauren Green equal to the fair rental value of the home for 1 week. Mandy can't claim a deduction because of the partial interest rule. Lauren can't claim a deduction either, because she received a benefit equal to the amount of her payment. See Contributions From Which You Benefit , earlier.
Since you would still own the entire property of which the carriage house is just a part, I think the above would apply.
Here's the entire publication. I was looking under Partial Interest in Property:
This, from IRS Publication 526:
Partial Interest in PropertyGenerally, you can't deduct a charitable contribution of less than your entire interest in property.
Example 1.
You own a 10-story office building and donate rent-free use of the top floor to a charitable organization. Because you still own the building, you have contributed a partial interest in the property and can't take a deduction for the contribution.
Example 2.
Mandy White owns a vacation home at the beach that she sometimes rents to others. For a fund-raising auction at her church, she donated the right to use the vacation home for 1 week. At the auction, the church received and accepted a bid from Lauren Green equal to the fair rental value of the home for 1 week. Mandy can't claim a deduction because of the partial interest rule. Lauren can't claim a deduction either, because she received a benefit equal to the amount of her payment. See Contributions From Which You Benefit , earlier.
Since you would still own the entire property of which the carriage house is just a part, I think the above would apply.
Here's the entire publication. I was looking under Partial Interest in Property: