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kforeman
New Member

If I donate a rental property to charity, am I able to get the charitable deduction and deduct my suspended passive losses on it as well?

 
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Coleen3
Intuit Alumni

If I donate a rental property to charity, am I able to get the charitable deduction and deduct my suspended passive losses on it as well?

Yes and no. You can't deduct the losses, they will be added to the basis.

____ If disposition was by gift or charitable contribution, loss is not deductible.  Instead, the basis of the asset for the donee is increased by unused losses.  See IRC § 469(j)(6).

_____ If loss is from a "rental", verify that it was not a temporary rental of the taxpayer'sresidence.  If the rental period was less than a year or two, IRS may view it as a temporary rental lacking in the necessary profit motive under IRC § 183, i.e. a nondeductible loss.   Deductions for rental of a personal residence may also be limited under IRC § 280

https://www.irs.gov/businesses/small-businesses-self-employed/passive-activity-loss-atg-exhibit-5-2-...

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Coleen3
Intuit Alumni

If I donate a rental property to charity, am I able to get the charitable deduction and deduct my suspended passive losses on it as well?

Yes and no. You can't deduct the losses, they will be added to the basis.

____ If disposition was by gift or charitable contribution, loss is not deductible.  Instead, the basis of the asset for the donee is increased by unused losses.  See IRC § 469(j)(6).

_____ If loss is from a "rental", verify that it was not a temporary rental of the taxpayer'sresidence.  If the rental period was less than a year or two, IRS may view it as a temporary rental lacking in the necessary profit motive under IRC § 183, i.e. a nondeductible loss.   Deductions for rental of a personal residence may also be limited under IRC § 280

https://www.irs.gov/businesses/small-businesses-self-employed/passive-activity-loss-atg-exhibit-5-2-...

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