Land donation to a nonprofit

[John Patrick10]

My wife and I sold some land to Habitat for Humanity at a large discount. We paid $20k for the land in 2017, was appraised for $84K this year, and sold it to HFH for $10K. How will we treat this donaton on our 2024 taxes?

[marctu]

So this is a bargain sale.  A bargain sale occurs when a taxpayer sells property to a charitable organization for less than its fair market value.  The fair market value less the value returned is a charitable gift. 

The charitable deduction is also limited to 30% of AGI, with a five-year carry forward. In some cases, the income tax savings may be spread over one to six years.

Thanks again for the question  @John Patrick10  

All the best,

Marc 

Employee Tax Expert