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Home Seller's Contribution to Down Payment Assistance Programs

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jlcl

Member
What is the name of your state? California

There are several home down payment assistance programs run by not-for-profit organizations. If the sellers were to contribute to the program to provide the buyer the grant to help close a deal, is the seller's donation to the grant program considered tax-deductible as charitable contribution?
 


seniorjudge

Senior Member
jlcl said:
What is the name of your state? California

There are several home down payment assistance programs run by not-for-profit organizations. If the sellers were to contribute to the program to provide the buyer the grant to help close a deal, is the seller's donation to the grant program considered tax-deductible as charitable contribution?
Q: If the sellers were to contribute to the program to provide the buyer the grant to help close a deal, is the seller's donation to the grant program considered tax-deductible as charitable contribution?

A: If the tax-exempt status of the organization is okay, then the donation would be tax-deductible.

BUT I will leave it to the tax experts here to tell you whether the donor can tell the organization exactly whom a donation should go to and still keep their tax-exemption.
 

abezon

Senior Member
The organization will know for sure. I suspect it depends on whether the seller's contribution is for a particular buyer or just goes into the general fund.
 

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