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If I own 4 cemetery plots purchased in'74 for $595 (total) are now selling for $2,350/ea, what would be my tax benefit for charitable donation back to cemetery?

 
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8 Replies

If I own 4 cemetery plots purchased in'74 for $595 (total) are now selling for $2,350/ea, what would be my tax benefit for charitable donation back to cemetery?

For real property held more than one year, you can claim the current fair market value.  However, your total donation will be limited to 20% of your gross income in most cases.  If your income is low enough that the $4700 is more than 20% of your gross income, the remainder would be carried over to next year.

If I own 4 cemetery plots purchased in'74 for $595 (total) are now selling for $2,350/ea, what would be my tax benefit for charitable donation back to cemetery?

Since the total donation is over $5,000, you need a qualified appraisal. Also, be sure that the cemetery qualifies as a charity.  It may not,.

If I own 4 cemetery plots purchased in'74 for $595 (total) are now selling for $2,350/ea, what would be my tax benefit for charitable donation back to cemetery?

Thank you for your response.  So $9,400 would be the total for all 4 plots.  So the $9,400 cannot be more than 20% of my gross income - is that correct?  THANK YOU AGAIN!

If I own 4 cemetery plots purchased in'74 for $595 (total) are now selling for $2,350/ea, what would be my tax benefit for charitable donation back to cemetery?

Yes, I apparently can't do math.

If the cemetery is run by a church, which is a "50% limit" organization, then your donation of real property would be limited to 30% of your income.  If the cemetery is a non-profit cemetery association, it is a "30% limit" organization, which means your donation of real property is limited to 20% of your income.  Turbotax will ask what kind of organization it is so you will need to know.  (The 50% limit and 30% limit applies to all donations, the real property donation limit is smaller than the overall limit for each type of organization.)  If the donation is more than your limit it would carry forward to next year.

Also, because the amount is more than $5000, you need an appraisal by a qualified appraiser, and both the appraiser and the donee organization must sign section B of form 8283.  The instructions and a copy of the form are here. <a rel="nofollow" target="_blank" href="https://www.irs.gov/uac/About-Form-8283">https://www.irs.gov/uac/About-Form-8283</a>

After you enter the donation in turbotax, the program will inform you of the need to have a signed form 8283 and send it to the IRS.  If you e-file, you will also print out a form 8453, that you will attach to the form 8283 and mail in.  (When an e-filed return requires an actual paper document, you can still e-file and then separately send in the extra paperwork.)  Send in the signed original but keep copies for your records.

If I own 4 cemetery plots purchased in'74 for $595 (total) are now selling for $2,350/ea, what would be my tax benefit for charitable donation back to cemetery?

LOL re: the math.  Thanks so much for your time and considerate answers.  This information is VERY much appreciated!!!  THANK YOU AGAIN!!  K

If I own 4 cemetery plots purchased in'74 for $595 (total) are now selling for $2,350/ea, what would be my tax benefit for charitable donation back to cemetery?

One more question - is the 20%/30% limit on just 'my' income or both 'my' and 'my spouses' income since we file married filing jointly?

If I own 4 cemetery plots purchased in'74 for $595 (total) are now selling for $2,350/ea, what would be my tax benefit for charitable donation back to cemetery?

On a joint return, the donation is also considered joint and the income limit is based on the joint income.

If I own 4 cemetery plots purchased in'74 for $595 (total) are now selling for $2,350/ea, what would be my tax benefit for charitable donation back to cemetery?

Thank you so much for your assistance!!  Happy New Year to you and yours... 🙂

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