Real Estate Donation is Handy for A Portfolio That’s Too Big to Handle
There comes a time in life when we need to simplify things. That is what happened to Allen and Rosa, who owned a portfolio of properties in Hartford, Connecticut. They disbanded the holding company for these properties, but then, of course, they were left with lots of commercial lots with unfortunately high holding fees. To make things worse, the sales market was weak in Hartford. Liquidating the properties turned out to be not so easy.
The good news is that there were no known environmental issues and nothing to prevent building and development of the sites. As a result, Kars4Kids was able to accept donation of the properties at no cost to the donors, Allen and Rosa. We handled the title and transfer process; provided a receipt so that Allen and Rosa could receive a tax deduction according to the property’s appraised value; listed the properties for sale, and then sold them at a handsome profit for our charity.
This was a win-win situation. Kars4Kids assumed responsibility for a property headache, with the proceeds of the sale going to fund educational initiatives for children. Allen and Rosa feel confident they made the right decision.
And that’s the way property donation should be.