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

[paulsharvey]

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…

So, I have Not read beyond 1st post, so...
Some/many places would not be willing to accept the donation. Too many liabilities. Possible soil contamination, legal disputes, and you basically are saying the property is of little to no value. Government would want you to spend all the money on subsurface investigation, clearing up/subordinating old easements, ect.

 

[ultrarunner]

It’s odd that charities here fall all over themselves seeking donations of cars, planes and real estate yet my result so far is by Real Estate they are looking for single family homes…

 

[ultrarunner]

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.

It was very eye opening yesterday with blocks of nothing but boarded up retail space, city parking garage closed and basically a ghost town downtown.

2019 competition for retail space to rent or renovate was at an all time high and then the pandemic hit riots, looting etc. and everything changed.

Several high profile profitable businesses left saying they were profitable but left because of unhappy customers and employees… theft and smash and grabs… you patronize an establishment only to return to your car and find window smashed.

30 story buildings have graffiti at the highest levels… must have used ropes?

Both mayor and district attorney recalled this week as business continues the exodus.

Homes are still selling but at reduced prices… commercial is a different animal…

On the vacancy tax a judge just overturned San Francisco vacancy tax so others may follow?

It does appear ignoring property crime breeds much worse to come.

Sidewalks downtown littered with shattered auto glass.

 

[Runner]

If the goal is to just get rid of the property, couldn't you just stop paying the property tax? Then, the county seizes the property and it's their problem.

 

[ultrarunner]

The goal is to get something for it through renting, sale or donation...

I'm sure there are unforseen pitfalls over the several year process before unpaid taxes would catch up.

Lesson learned is just how fast fortunes can change...

1.3 million property now 400k maybe with a pronged 18 month process to close or maybe worth less at a future date in time.

My interest is 16% and the only one that has set foot on the property in years... I'm there at least weekly sweeping and picking up.

By far the worst eyesore is the US Post Office and city told me face to face that it can not compel the Post Office to do anything because it is under Federal jurisdiction.

Much has changed in the 82 years since grandpa bought the property and opened... I'm old enough to recall back in the day of full time mechanics, auto detailers, sales and insurance employees all earning their livelihood and supporting families...

 

[Runner]

One other idea... you know those companies that buy "ugly houses"? I wonder if there are companies that do that with real estate, i.e., buy "problem properties" at a discount to flip them. You might only get a fraction of the worth, but better than nothing.

 

[2manyrocks]

Find charity or a buyer who will be thorn in the side of the city.

 

[paulsharvey]

Possible value in leasing for an ATM or Ice machine?

 

[ultrarunner]

ATM losing proposition because of robbery and entire machines being ripped out.

Someone suggested EV charging... certainly not many around but probably would only get used as last resort.

To keep tractor related here is short clip showing a backhoe used to steal ATM inside Oakland store.

Here are a few more from first hand knowledge.

 

[2manyrocks]

Don't know all the details, but have read Oakland was one of the cities to actually defund the police budget by 17 million in 2021. Oakland City Council Votes to Defund Police, Stripping More Than $17M from Department Budget

Add to that this year: "At the October 22 city council meeting, Oakland’s Director of Finance reported that the city overspent its budget by nearly $100 million in the last fiscal year." Budget Woes Cause Oakland Council to Consider Fire, Police Cuts - Peninsula Press

Mayor and DA just got recalled, too.