Anyone here donate Real Estate for charitable deduction and how did it work out?

[California]

here, they have a section in the development department called the Business Assistance Center, who's job is to act as sort of a consumer advocate for people trying to get projects through the system, etc. They have people who literally walk around to other groups in the department to try to get the straight story on exactly what is needed to get projects off "dead center" and act as an interpreter.

I and wife worked for a large government agency. We had a trick for getting things done when they seemed bogged down:

Talk to people and learn, in detail, what the un-responsive branch should be doing with your request. Then go to that branch and drag them step by step through their own procedures.

Ask their manager for 'advice' if there is one step in the process that is holding everything up and the person responsible doesn't know what to do, a surprisingly common situation.

 

[rScotty]

Family has a small city paved and fenced parking lot leftover from the auto dealership days going back to 1942

It’s been rented with city rental business license to a state and city licensed car dealer for overflow parking since the family left the auto business.

The city has informed me via certified Mail the parking lot can no longer be used to store vehicles with storage being any vehicle there for more than 72 hours.

In 21 days the violation admin fee of $3800 kicks in and then $100 per day for the first 7 days and the $200 for the next 7 days, etc.

Appealling comes with appeal filing fee of several thousand dollars.

The commercial Real Estate Market is down 60% and if the property is vacant a $6,000 annual extra vacancy tax kicks in.

The family members in their late eighties want me to buy them out but why?

What about donating to a charity for tax write offs?

Several Realtors say it’s about 18 months to sell as no one will buy without city entitlements in hand…

Ultrarunner, here's some advice that may be useful for you. I've several times been an elected official in small town government. A lot of a town board's monthly business meeting involves responding to odd property easements, special uses, and boundary adjustments of just the sort you have. Often they involve one-time solutions that are reasonable and do not set a precedent, they are just things not addressed in the original town ordinances.

If I were you, I'd first go to your town clerk and arrange to have the issue published on the next town Board Meeting agenda as a "Board discussion and action item". Y
You should then plan to be at that meeting and either make your case or ask the Board for time at a future meeting to present a specific proposal of exactly what you want to do with the property. Your goal should be to make it advantageous to everyone.

Even if your solution wins favor as a win/win for everyone involved, it still requires a formal resolution and a vote by the town governing board to have standing. There is no reason you cannot do this yourself. If you would rather use an attorney, that's OK too - but the Board may still want to ask you questions directly. I know I often do.

Big government is messy, but at the local level it can work very well.

rScotty

 

[2manyrocks]

It's pretty messed up when the city sends letters to the victims of graffiti threatening thousands in dollars of fines for "blight" caused by vandalism in the community.

 

[ConawayFarms]

I’ve been in a tricky spot with property management before, and it can be overwhelming, especially with all those fees piling up. Donating to a charity is a solid idea for tax write-offs, but it really depends on what your family wants to do long-term. If you’re considering buying them out, maybe think about repurposing the lot into something more community-focused, like a small park or local market—might help avoid those extra taxes too. I’d definitely recommend chatting with a real estate lawyer to figure out the best way forward.

 

[ultrarunner]

It's pretty messed up when the city sends letters to the victims of graffiti threatening thousands in dollars of fines for "blight" caused by vandalism in the community.

I think I’m definitely in the getting old part… as my attitude towards these mandates has changed from let’s find out and get it resolved to here we go again.

Much in speaking with friends seems to impact city property way more than county property.

I will see if walking the halls at the city gets me anywhere next week.

I texted the renter saying I’m not seeing a good outcome on this… 70 years in the family business and never a zoning or blight letter… but we were there 6.5 days each week unlike now where it’s just overflow for a car dealer so no sales or marketing… just a fenced lot with small office, concrete block washroom and car wash/detail rack.

 

[ultrarunner]

I’ve been in a tricky spot with property management before, and it can be overwhelming, especially with all those fees piling up. Donating to a charity is a solid idea for tax write-offs, but it really depends on what your family wants to do long-term. If you’re considering buying them out, maybe think about repurposing the lot into something more community-focused, like a small park or local market—might help avoid those extra taxes too. I’d definitely recommend chatting with a real estate lawyer to figure out the best way forward.

The commercial district is filled with vacant store fronts and for lease/sale signs.

The city wants housing units and says up to 20 could be built with ground level parking and floors housing above.

Nothing here is getting built without massive Federal funding and that had pretty much dried up…

A huge 5 story housing going in but it’s been 5 years under construction with contractors bailing during the pandemic and material costs breaking the bank..

 

[ultrarunner]

You feel obligated and I get that.

My dads sister really drove my dad BS crazy and yet he was there for her every Sunday with her KFC meal at the nursing home.

It was the same aunt who shunned my mother because my parents weren't of the same religion, and yet after my mom died, dad took care of his sister.

FYI, my dad caught hell himself when the family home had to be sold because of his sister thinking she had the right to inherit the place only because she was the oldest child in the family (not the one in the nursing home mind you).

If you were my father, this is what I would tell you...

Sell all of your assets and move (perhaps to Panama) and enjoy what you have.

The 3 P's are the easiest for American expats... Portugal, Panama, Philippines.

A French guy born in the United States to French father and US mom relocated to France at 18 months... is now in 30's, doesn't speak English and Is wanted by the IRS for failing to file.

He was not even aware he had a social security number let alone having to file in a country where he left before age 2 and never employed and never held a US passport.

He thought it would be simple to renounce his citizenship but no dice for this accidental American.

The IRS demands a list of all his assets and the filing of a return to exit plus a $2300 renounce fee.

He started a website as US is one of the only countries that taxes citizens on Income earned anywhere in the world...

 

[ultrarunner]

Had a break from work and went to city hall… no one there.

City of 450,000 and Friday morning it turns out is not the day for building, planning, zoning.

I did meet the assistant city manager who was very gracious and immediately gave me her card… she said use it when I go to zoning and feel free to copy or tag her on emails.

Baby steps…

 

[geteh]

Family has a small city paved and fenced parking lot leftover from the auto dealership days going back to 1942

It’s been rented with city rental business license to a state and city licensed car dealer for overflow parking since the family left the auto business.

The city has informed me via certified Mail the parking lot can no longer be used to store vehicles with storage being any vehicle there for more than 72 hours.

In 21 days the violation admin fee of $3800 kicks in and then $100 per day for the first 7 days and the $200 for the next 7 days, etc.

Appealling comes with appeal filing fee of several thousand dollars.

The commercial Real Estate Market is down 60% and if the property is vacant a $6,000 annual extra vacancy tax kicks in.

The family members in their late eighties want me to buy them out but why?

What about donating to a charity for tax write offs with Speed Sale Estate?

Several Realtors say it’s about 18 months to sell as no one will buy without city entitlements in hand…

The family likely wants to sell because of the upcoming fines, the vacancy tax, and the difficulty in selling without city entitlements. Donating the property to a charity could provide tax write-offs, but it wouldn’t address the ongoing costs and challenges. Given the current market conditions and the long timeline to sell without entitlements, it might make sense to explore selling with the necessary permits or consider a different use for the property that aligns with city regulations. Consulting with a real estate expert or tax advisor could help clarify the best option.

 

[2manyrocks]

It could be Ultrarunner is asking about the practicality of making a charitable donation because of the challenge of finding a buyer given the decline in the area. Some charities do not want property donations because they don't want to deal with these challenges, either.

Some small towns are bad about speeding tickets because they generate the revenues that pay town salaries. Could be that these despicable graffiti fines against innocent property owners are city revenue enhancers. It's not like the property owner vandalized his own property. It's more like the city isn't protecting property owners from vandalism, but then the city threatens the property owners with heavy fines after they have been victimized. That really seems very, very wrong.