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Indirectly, yes. The donation is going to reduce your ordinary taxable income. The gain on the sale is going to be capital gains and, depending on the holding period for the home before selling it, could be long-term capital gains.
Benefit #1 - The capital gain amount is not affected by the donation and is likely, with the numbers you are using, to be taxed at 15% assuming the home was held for at least a year (so long-term rates). This tax rate will be lower than your ordinary income tax rate which is likely 22% or higher with the numbers you are using.
Benefit #2 - The charitable donation will reduce the ordinary income but only marginally. Meaning the donations are itemized deductions so only the amount above your standard deduction will be tax beneficial. On the plus side if you are in the 24% tax bracket every $100 of donation above your standard deduction reduces your tax $24 vs only $15 if the capital gain were reduced.
I would like to ask a more detailed question regarding response item #1 as I am retired. However, I don't want the information displayed in a public forum. Is that possible?
No, everything posted on here is public. There is no private chat option in Community. You can choose TurboTax Live to get individual and confidential tax help. For more information on TurboTax Live see: How do I get TurboTax Live?
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