Yes, will resell the property with its national auction partner and the proceeds of the auction sale will pay off the mortgage balance first, with the remainder going to KCRW (after normal closing costs such as escrow, title fees, transfer tax, real estate commissions, etc.). Prior to the auction we will determine if the likely value exceeds the mortgage balance and we may have to reject any asset that does not have sufficient equity to result in cash proceeds to KCRW.
If your property has a high value, you may elect to donate a portion of the equity to KCRW (falling under a Bargain Sale-IRS Section 170).
Any type of real property may be donated that has positive equity, clear title, and no environmental issues. Common property types are land, second homes, rental property, commercial real estate and estates. We do not accept timeshares or mobile homes.
Yes! Our partner has a national real estate auction platform, and a national title company partner so we can quickly vet assets and convert them to cash without KCRW ever having to own or operate the asset. Also, using the IRS Bargain Sale, KCRW can accept real estate with mortgage debt and high value assets with a portion of the equity going to the KCRW (and a portion in cash to donor). Donors don't need to pay for anything and only need to fill out a seller disclosure and sign the deed at closing. We take care of everything else!
Real estate donations are based on the full appraised value, not the sale price. Capital gain tax may also be avoided (excluding the mortgaged portion or cash received). The deduction can be carried forward up to five years following the year of sale.
In most cases, you may deduct the difference between the cash received and the fair market value based on an appraisal specifically completed to assess the
value based on IRS gift appraisal guidelines. You many not deduct proceeds
that were applied to pay off mortgages or back real estate taxes.
Most donated properties will be completed within 90 days, and some as quickly as 14 days. Our goal is to maximize the value of the property.
You do not have to pay any commissions. If your property is currently listed with a broker, KCRW will pay the commission owed based on the list price, or tax assessor value if there is no list price. There are no closing costs to the donor and all unpaid liens will be paid off at closing. The donor is generally not asked to pay anything out of pocket and prepaid property taxes and assessments will be remitted back to the donor at closing.
In short, it depends on the transaction. If KCRW can’t achieve a resale sales price that results in a surplus, or if there are title or serious repair issues found, the nonprofit may terminate the donation agreement.
We have the ability to process properties with environmental issues, however, only high value assets would be considered due to the risk and complexity. We have investors specialized in environmental clean up and often issue indemnities to sellers via complex insurance placements.
Yes! The real estate donation program is available for properties located anywhere in the U.S. Our processing team works with a national network of title companies, auction houses, and real estate agents to assist with the entire selling process.
Yes. Once your property sells and the transaction is complete, you will receive an acknowledgment letter via email or mail—whichever you prefer—on behalf of KCRW. Your qualified IRS appraisal will serve as your primary tax documentation, and we can also issue IRS Form 8283 upon request.
CARS (Charitable Adult Rides & Services) runs the KCRW Real Estate Donation Program. CARS is an ISO 9001-certified 501(c)(3) nonprofit organization based in San Diego that operates under the governance of an independent board of directors and specializes in vehicle donation and real estate donation services for other nonprofits. CARS follows governmental compliance with all IRS and state regulations concerning vehicle and real estate donation programs, fundraising registrations, and charitable receipting requirements throughout all 50 states and Canada. CARS has also maintained an A+ Better Business Bureau rating for over ten years.
CARS provides IRS Form 8283 once your donation contract has been fully executed and signed by both parties. This form will be sent to you along with your completed contract.
The most important documentation you will need for your tax deduction is your qualified IRS appraisal. This will substantiate the value of your real estate donation when filing your taxes. We recommend keeping both the signed Form 8283 and your appraisal for your records.
To request IRS Form 8283, please contact our team during regular business hours at 844-277-HOME (4663) or email lanab@careasy.org. We’ll be happy to assist you