How to Donate a Rental House to a Church

If you have a rental house that you no longer want to keep but you do not want to deal with selling it, you can donate it to a local church. According to the Willowbrook Church's Creative Giving website, by donating a rental house to a church, you can avoid expensive capital gains taxes that you would normally incur when selling the house. Instead, you get to avoid the capital gains tax and get a tax deduction from your donation.

Instructions

- 1
  Pay off any outstanding mortgage debt on the real estate because you cannot donate a house if you still owe money on it.
- 2
  Confirm that the church has tax-exempt status by using the Internal Revenue Service's website (see Resource section). The online version of Publication 78 allows you to search by name, state or city to check tax-exempt status.
- 3
  Consult a real estate appraiser to get an appraisal on the rental house before you donate it. You need the professional appraisal to claim the fair market value of the house on your taxes.
- 4
  Sign over the deed of the rental house to the church to transfer the ownership of the house when you are ready to make the donation.

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