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Real property donation

Please help with the following questions:

Donated item:  Vacant land

Donated to:  Public charity (50%)

Date of donation:  01/04/2023

Date acquired:  10/22/1990

How acquired by donor:  Quit Claim Deed (gift from relative, their cost basis $2)

Donor’s cost basis:  $5,634 (storm damage downed tree removal 2019)

Land Appraisal Report Estimated Market Value:  $240,000

Property sold by donee on 02/28/2023 for $140,000

Can we claim this donation on our 2023 tax return since nearly all of it is “appreciated” value?  Can we claim the appraisal amount or should the lower sale amount be entered in TurboTax as the appraisal amount (FMV)?

Thank you in advance for your reply.

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2 Replies
Expert Alumni

Real property donation

1. You can claim your donation for 2023 on your 2023 return. Any amount disallowed this year will be carried over.

2. The selling price of the donated land is a strong indicator of the value. The IRS states in Determining the Value of Donated Property: Publication 561, Determining the Value of Donated Propert...:

Cost or Selling Price of the Donated Property

The cost of the property to you or the actual selling price received by the qualified organization may be the best indication of its FMV. However, because conditions in the market change, the cost or selling price of property may have less weight if the property was not bought or sold at a time that is reasonably close to the date of contribution.

The cost or selling price is a good indication of the property's value if:

  • The purchase or sale took place close to the valuation date in an open market,
  • The purchase or sale was at “arm's-length,”
  • The buyer and seller knew all relevant facts,
  • The buyer and seller did not have to act, and
  • The market did not change between the date of purchase or sale and the valuation date.

Publication 526, Charitable Contributions states:

Amount of deduction—General rule.

When figuring your deduction for a contribution of capital gain property, you can generally use the FMV of the property.


However, in certain situations, you must reduce the FMV by any amount that would have been long-term capital gain if you had sold the property for its FMV. Generally, this means reducing the FMV to the property's cost or other basis. You must do this if:

The property (other than qualified appreciated stock) is contributed to certain private nonoperating foundations,

You choose the 50% limit instead of the 30% limit for capital gain property given to 50% limit organizations, discussed later,

The contributed property is intellectual property (as defined earlier under Patents and Other Intellectual Property),

The contributed property is certain taxidermy property, as explained earlier, or

The contributed property is tangible personal property (defined earlier) that:

Is put to an unrelated use (defined later) by the charity, or

Has a claimed value of more than $5,000 and is sold, traded, or otherwise disposed of by the qualified organization during the year in which you made the contribution, and the qualified organization hasn't made the required certification of exempt use (such as on Form 8282, Donee Information Return, Part IV). See also Recapture if no exempt use, later.


 Tax Information on Donated Property for more information on filing 8283V since your donation is over $10,000.

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Real property donation

Thank you.  I appreciate your reply.

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