I could not find a tax or IRS stack exchange so I post here. Where I live, there is much commercial real estate that is empty. I would like to propose to the landlords to donate the space to a non-profit temporarily until the market demand picks up. Can I propose such a tax advantage to the landlord? Does such a provision exist in the tax code?
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Have you tried Personal Finance & Money?– phoogCommented May 23, 2017 at 2:45
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1 Answer
No, there is no tax benefit to the landlord
Only gifts of property can be receipted by the charity - not services or loans of property.
See http://www.lexology.com/library/detail.aspx?g=7f940252-5177-4b48-82f3-c2db9dd7e5f4
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Your link seems to concern Canada, but the question mentions the IRS, so it presumably concerns the United States.– phoogCommented May 23, 2017 at 2:48
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@phoog I believe the rationale is the same everywhere - a donation must have a cost of some sort. The landlord is already claiming deductions for property costs and would have to pay tax on rental income - giving the space up freely has no impact on the landlord's income one way or the other.– Dale M ♦Commented May 23, 2017 at 3:38
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We are in New Jersey, USA. The article cited by Dale M is for Canadian tax code, but I assume Canada based their tax code on the IRS. Commented May 23, 2017 at 4:48