What is the name of your state? Texas
Hi, I'm involved in a small nonprofit, and we have a creative plan to build a new building.
The plan is to create a separate Limited Partnership that will buy the land and build the building. Members of our nonprofit and others, are encouraged to "invest" in the LP. The sole intent of the LP is to buy the land, build the building, let the property increase in value over 2 years, then donate the property to the nonprofit. The advantage is that all investors in the LP would achieve a greater tax deduction because their share of the donated property will be valued higher than their original investment. Say you invest $1000 in the LP. When the property is donated, your investment may have appreciated to a $1400 donation, for example. So you can claim a $1400 donation instead of $1000.
Anyone see any gaping holes in this plan?
Hi, I'm involved in a small nonprofit, and we have a creative plan to build a new building.
The plan is to create a separate Limited Partnership that will buy the land and build the building. Members of our nonprofit and others, are encouraged to "invest" in the LP. The sole intent of the LP is to buy the land, build the building, let the property increase in value over 2 years, then donate the property to the nonprofit. The advantage is that all investors in the LP would achieve a greater tax deduction because their share of the donated property will be valued higher than their original investment. Say you invest $1000 in the LP. When the property is donated, your investment may have appreciated to a $1400 donation, for example. So you can claim a $1400 donation instead of $1000.
Anyone see any gaping holes in this plan?