Can a Person Take a Tax Deduction for Donating Space in a Building to a Charity?

Generally, you cannot deduct a charitable contribution of less than your entire interest in property. A contribution of the right to use property is a contribution of less than your entire interest in that property and is not deductible.

For example, you own a 10­-story office building and donate rent­ free use of the top floor to a charitable organization. Because you still own the building, you have contributed a partial interest in the property and cannot take a deduction for the contribution.

Similarly, you cannot claim a charitable deduction for donating a week at your vacation home to be auctioned off at a fundraiser.

For example, Sue Smith owns a beach house that she frequently rents out. She contributed the right to use it for a week to her Church. At the auction, her church received and accepted a bid from John Jones equal to the fair rental value of the home for 1 week. Sue cannot claim a deduction because of the partial interest rule. John cannot claim a deduction either, because he received a benefit equal to the amount of her payment.

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