I have commercial rental property that is rented for $1 to a non-profit entity. Can I deduct fair market rate as a donation

[lcwilliams66]

Does it matter if the $1 was for the first month only and no money is paid in future months or years

[DDollar]

No, if you want a deduction you have to give them the property, not just let them use it.

[DDollar · Accepted solution]

No. A tax rule known as the “partial interest rule” prevents landlords from claiming a charitable deduction in these circumstances. This rule generally allows a deduction only if the donor contributes the ‘entire interest’ in the property, or an undivided share of the entire interest.

The only way you can get a tax deduction is by donating all or a part of the property ownership to a qualified charity.