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Tax Law (Questions About Taxes)/Individual purchasing property for a nonprofit


I work with a registered non-profit animal shelter and recently someone generously offered to buy property for us to use as a permanent location. The individual has stated that that he must wait one year after the purchase to sign the building over to us or he will be heavily taxed. Is this true?


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If he donates the building to you within 12 months of purchasing it, he will get a charitable deduction for the fair market value or his basis, whichever is less.

If he holds it for more than 12 months, he can take a charitable contribution for the fair market value at the time of the donation.

So, if the property increases in value, he gets a larger deduction.

Hope this helps.

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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